IRS Is Automatically Refunding 2025 Adoption Credit Carryforwards: Who Qualifies, What the Notice Means and What to Do Before Filing 2026 | YCL CPA
On October 16, 2026 (IR-2026-123), the IRS said it has begun automatic refunds to more than 50,000 adoptive families because, for tax year 2025 only, 2020–2024 adoption credit carryforwards can count toward the refundable credit of up to $5,000 per child. Most families need not amend, but should check the IRS notice, correct the 2026 carryforward and consider Form 843 for any estimated tax penalty.
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