If you adopted a child and have been carrying forward an unused adoption credit on your tax return, keep an eye on your mailbox. The IRS has started issuing refunds automatically, and in most cases you do not need to file anything to get yours.

On October 16, 2026, the IRS announced that it has already begun issuing refunds to more than 50,000 taxpayers who benefited from the adoption tax credit carryforward. It expects the refund process to be complete for most eligible taxpayers by the end of the year. That is welcome news, so here is what you should know.

What Happened?

The Treasury Department clarified how it interprets the Working Families Tax Cuts as they apply to the adoption tax credit. Under the new interpretation, for tax year 2025 only, adoption credit carryforwards from prior years (2020 through 2024) can increase the amount of the adoption credit that is refundable in 2025. The refundable amount is limited to $5,000 per qualifying child.

A Quick Refresher on Carryforwards

The portion of the adoption credit that is not refundable can be carried forward for a maximum of five years. Those unused amounts from earlier years are what the IRS is now using to increase the refundable amount for 2025.

Do I Need to File an Amended Return?

Generally, no. The IRS says it will adjust affected taxpayers' accounts and issue any resulting refunds, and that taxpayers should not need to file an amended return to receive the additional credit. For most affected families, no action is needed.

Who Gets It Automatically, and Who May Wait

• If you filed your 2025 return before April 15, 2026, you will generally receive any applicable adjustment automatically.

• If you filed under an extension, or your account has identity theft indicators, freezes, dependency conflicts, or other issues, the IRS will review your account later in 2026. That review happens after your return is processed or the account issue is resolved.

What to Expect in the Mail

The IRS will send a notice, generally within 30 days of the adjustment. The notice will tell you the amount and whether the adjustment resulted in a refund or was applied toward another tax or non-tax debt. That last part matters, so read the notice carefully.

Refunds and adjustments began in late September and will continue until the process is complete.

What You Can Do Now

• Watch your mail for an IRS notice about your 2025 account.

• When it arrives, compare it with your 2025 tax return and keep it with your tax records.

• Create an IRS Individual Online Account if you do not already have one. The IRS encourages it because it lets you view your tax records, check refund status, view notices, and make payments without calling or mailing the IRS.

• If a notice does not look right to you, or you are not sure whether you are affected, contact our office and we will help you sort it out.

You can also find more information at IRS.gov/AdoptionCredit.

The Bottom Line

If you carried an adoption credit forward from 2020 through 2024, this could mean a refund on its way to you. Review any IRS notice carefully, keep it with your records, and reach out if anything looks off. If you have questions about your adoption credit or your 2025 return, contact our office.