10/26/2026
❤️ Adoption Tax Credit update: Some families may receive an automatic IRS adjustment.
The IRS announced on October 16, 2026 that it has begun adjusting certain 2025 tax returns involving unused Adoption Tax Credit amounts carried forward from 2020 through 2024.
For tax year 2025 only, qualifying carryforwards may increase the refundable portion of the credit, up to $5,000 per eligible child. This is current IRS guidance—not a proposal.
Who may be affected?
Taxpayers who claimed an Adoption Tax Credit carryforward from 2020–2024 on their 2025 return may qualify. The IRS expects most applicable refunds to be issued automatically by December 31, 2026.
What should you do?
* Do not automatically file an amended return just to request this adjustment.
* Watch for an IRS notice explaining any change.
* Compare the notice with your 2025 return and keep it with your records.
* Remember that a refund may be applied to an outstanding federal or other qualifying debt.
* Extension filers and returns involving identity-theft indicators, freezes or dependency conflicts may be reviewed later in 2026.
Contact Premier Tax Consultants if you receive an IRS notice and need help understanding it.
General tax education, not individualized tax advice. Eligibility depends on your return, adoption-credit history and IRS account status.
Official IRS information:
Automatic Adoption Tax Credit adjustments
IRS Adoption Credit guidance