The IRS is paying out refunds, potentially worth thousands of dollars, to more than 50,000 families because of a tax credit change — do you qualify?

Do you qualify?

According to the IRS’s carryforward FAQ, you may be eligible if:

• you filed a 2025 Form 1040, 1040-SR or 1040-NR
• you claimed or were eligible to claim the adoption credit on Form 8839
• you had carryforwards from 2020 through 2024 available for use in 2025
• your 2025 return and account information show your refundable credit should increase

Carryforwards from before 2020 have expired. The FAQ also warns that your result depends on other factors and may be smaller, or there may be no change at all.

Income matters too: For 2025, instructions note the credit begins to shrink for modified adjusted gross income above $259,190 and is eliminated at $299,190, though the IRS says a 2024 carryforward can still allow you to claim it at higher incomes.

What to expect

Taxpayers who filed their 2025 returns before April 15, 2026 should automatically receive any adjustment due. Returns filed under an extension, and accounts with issues like identity theft indicators, freezes or dependency conflicts will be reviewed later this year.

The IRS says it will send a notice, typically within 30 days of the adjustment, showing the amount and whether it produced a refund or was applied to another debt. Be sure to compare it with your 2025 return and keep it with your tax records.

Don’t file an amended return just to request this adjustment, the FAQ notes. The exception: If you had a qualifying carryforward but left it off your 2025 return, you may need to file Form 1040-X with Form 8839.

Key catches and where to get more details

“Where’s My Refund?” won’t show this payment. The IRS says to check your notice, IRS Online Account or tax transcript instead.