IRS Begins Issuing Automatic Refunds for Taxpayers With Adoption Tax Credit Carryforwards.

Last week, the IRS announced that it has begun issuing tax refunds to more than 50,000 taxpayers who will benefit from the adoption tax credit carryforward. For the 2025 tax year, the Treasury's interpretation of recent changes to the adoption tax credit could increase the refundable portion of the adoption tax credit (based on tax credit carryforwards from tax years 2020-2024). The increases remain subject to the $5,000 per-child limit. Because the IRS is automatically issuing the refunds, qualifying families will not be required to file amended tax returns to benefit from the changes. The IRS will notify affected taxpayers within 30 days of the adjustment. The notice will contain details about whether a refund was issued or the amount was applied toward another of the taxpayer's debts. The IRS again encourages taxpayers to create an IRS Individual Online Account via irs.gov to check the status of this possible refund and other tax information. For more information on the adoption tax credit, visit Tax Facts Online. Read More: Link to Q758.