10/20/2026
Finalized your adoption in the last few years? You may receive a refund from the IRS (please consult your tax preparer as we cannot give advice).
Here is information from the IRS Newsletter
Issue Number: IR-2026-123
Inside This Issue
IRS has begun issuing automatic refunds to individuals who claimed Adoption Tax Credit carryforward from prior years
IR-2026-123, Oct. 16, 2026
WASHINGTON — The Internal Revenue Service has already begun issuing refunds to more than 50,000 taxpayers who benefited from the adoption tax credit carryforward and expects the refund process for most eligible taxpayers to be complete by the end of the year.
The Treasury Department clarified its interpretation of the Working Families Tax Cuts affecting the adoption tax credit. Under the new interpretation, for tax year 2025 only, adoption tax credit carryforwards from prior tax years (2020-2024) can increase the amount of the adoption tax credit that is refundable in 2025, subject to the $5,000 per qualifying child limitation.
“By issuing refunds without requiring eligible families to file an amended return, the IRS is helping reduce the financial burden on those who decided to adopt a child into their family,” said IRS Chief Executive Officer Frank J. Bisignano. “This administrative change will help families access the tax benefits they are entitled to as quickly and simply as possible.”
IRS will adjust affected taxpayers’ accounts to reflect this change and issue any resulting refunds, notifying taxpayers of any changes made to their accounts. Taxpayers should not need to file an amended return to receive the additional credit. This approach offers immediate relief to affected taxpayers, lessening the burden and reducing the necessity to file amended returns.
Taxpayers will receive notices from the IRS, generally within 30 days of the adjustment, informing them of the amount and whether the adjustment resulted in a refund or was applied towards another tax or non-tax debt. Taxpayers should review the notice carefully, compare it with their 2025 tax return, and keep it with their tax records.
Refunds and adjustments began in late September and will continue until complete. Affected taxpayers generally do not need to take action. Taxpayers who filed their 2025 return before April 15, 2026, will generally receive any applicable adjustment automatically. Taxpayers who filed their returns under an extension or whose accounts have identity theft indicators, freezes, dependency conflicts or other issues will be reviewed later in 2026 after the return is processed or the account issue is resolved. For more information, visit IRS.gov/AdoptionCredit.
The IRS encourages all taxpayers to create an IRS Individual Online Account to access their tax account information securely online. An IRS Online Individual Account enables taxpayers to view their tax records, check refund status, view notices and make payments without the need to call or mail the IRS.
https://www.irs.gov/credits-deductions/individuals/adoption-credit
You can claim the Adoption Credit on your federal income taxes for up to $16,810 in qualified expenses.
