The IRS is automatically issuing refunds to taxpayers who claimed the Adoption Tax Credit in prior years (2020-2024) and carried it forward to 2025. This follows a Treasury Department clarification allowing more of the credit to be refundable for 2025, up to $5,000 per qualifying child.
Eligible taxpayers do not need to file an amended return—the IRS will adjust accounts and send refunds or apply them to debts. Notices will arrive within 30 days of adjustments. Most refunds will be processed by year-end, but delays may occur for those with extensions or account issues (e.g., identity theft flags).
Who it affects: Families who claimed the Adoption Tax Credit in 2020-2024 and carried it forward to 2025.
General information, not tax advice. Questions about your situation? Call (229) 469-9292 or book a free consultation.
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