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IRS Sends Automatic Refunds to Families Owed More Adoption Credit
More than 50,000 refunds have gone out under a new reading of the 2025 rules. Most eligible families do not need to amend.
The IRS has started sending refunds to more than 50,000 taxpayers who are owed more adoption tax credit for 2025, and expects to finish for most eligible taxpayers by the end of the year, the agency said October 16.
The money comes from a Treasury reinterpretation of the 2025 tax law. For tax year 2025 only, unused adoption credit carried forward from 2020 through 2024 can now increase the part of the credit that is refundable in 2025, up to $5,000 per qualifying child. Families who had a carryforward may therefore be owed cash back rather than only a reduced tax bill.
Most people do not need to do anything. The IRS is adjusting accounts itself and says taxpayers should not need to file an amended return. A notice follows, generally within 30 days of the adjustment, showing the amount and whether it was paid out or applied to another tax or non-tax debt. Compare it with your 2025 return and keep it with your records.
Timing depends on how you filed. Returns filed before April 15, 2026, are generally adjusted automatically. Returns filed on extension, and accounts with identity theft flags, freezes or dependency conflicts, will be reviewed later in 2026. Details are at IRS.gov/AdoptionCredit, and your IRS online account will show the adjustment once it posts.
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