The IRS continues to automatically send money back: they are depositing up to US$ 5,000 per child to the people who are entitled to it

The United States Internal Revenue Service (IRS) announced that it has begun issuing refunds to more than 50,000 taxpayers who had unused adoption tax credits from prior years. The measure seeks to correct the calculation of certain tax benefits for tax year 2025.

According to the IRS, in a statement published on October 16, 2026, the adjustments began in late September and will continue over the coming months. The agency expects to complete most of the corresponding refunds before the end of 2026.

Who can receive the IRS automatic refunds?

The measure is aimed at certain taxpayers who had unused adoption tax credits from prior years and who can apply them to the calculation of their 2025 benefit.

According to the official IRS questions and answers, the following conditions must be met to qualify for the automatic adjustment:

• Have filed a federal tax return for tax year 2025 using Form 1040, 1040-SR, or 1040-NR.
• Have claimed or have been eligible to claim the adoption tax credit using Form 8839.
• Have adoption credits from prior years that could still be used in 2025.
• Have information on the return and in the tax account that allows the IRS to determine that the refundable portion of the credit should be increased.

In particular, the agency says that outstanding credits originating between 2020 and 2024 may be considered, as long as they remain available for use in 2025.

However, not everyone who claimed the adoption credit will receive money. The adjustment depends on the individual tax situation and the information available in IRS records.

How much money can the IRS return to taxpayers?

The change responds to a new interpretation by the Treasury Department regarding the tax provisions related to the adoption credit.

For tax year 2025 only, outstanding adoption credits from prior years can increase the refundable portion of the benefit, with a limit of US$ 5,000 per eligible child.

This does not mean that all taxpayers will receive that amount. The actual amount depends on factors such as available credits, the number of eligible children, income limits, and each person’s tax obligations.

In addition, the adjustment may produce different results, such as refunds, a reduction in the outstanding tax balance, or no change in the amount to be received.

Do you need to take any steps to receive the IRS refund?

The IRS explained that most eligible taxpayers do not need to file an amended return to receive the adjustment.

In general, those who filed their return for 2025 before April 15, 2026, will automatically receive the corresponding correction, as long as the agency has the necessary information.

On the other hand, returns filed with an extension and accounts with unresolved issues, such as identity verification or conflicts related to dependents, may be reviewed later in 2026.

In certain cases, when information on prior-year adoption credits is missing, it may be necessary to file an amended return.

How do you know whether the IRS made the refund?

The agency will send a notice to taxpayers whose accounts are adjusted, generally within 30 days after the modification.

The notice will indicate the amount of the adjustment and explain whether it generated a refund or whether the money was applied to a tax debt or another outstanding obligation.

Taxpayers can also consult the updated information for their account through the IRS digital platform.