IRS is sending up to $5,000 per adopted child - could your family qualify?

Some American families could receive up to $5,000 per adopted child as the IRS begins sending refunds for unused adoption tax credits. The payments had started on October 22 and the agency expects to finish issuing them by the end of this year.

The refunds are for families who were unable to use the full value of their adoption tax credits in previous years. They will not be available to every household and the amount each family receives will depend on its eligible unused credit.

Which Families Can Get the Refund

So to qualify, families must have had unused Adoption Tax Credit amounts carried forward from 2020 through 2024 that remained unused when they filed their federal tax returns in 2026.


The maximum refund is $5,000 per child. However, eligible families may receive less depending on the amount of credit they have left.

The payments are being issued automatically. So families do not need to file amended tax returns to receive the money.

Why Some Families Didn't Use the Credit

Adoption Tax Credit helps families offset federal income taxes related to adoption costs. But some families did not owe enough federal income tax to use the full credit available to them.

So the unused amount could be carried forward to future tax years. Under the earlier approach, the credit could reduce a family's tax bill, but it did not necessarily result in money being returned to the taxpayer.

The Treasury Department and the IRS have now updated their interpretation of the relevant tax rules to allow refunds for qualifying unused credits.

How Will Families Know If They Qualify

The IRS will send notices explaining the refund amount. The notice will also state whether any part of the payment was used to cover another tax or non tax debt.

Families who may be eligible should watch for these notices and check the information as the agency expects to complete the payments by the end of 2026.

$5000 Refund Is Not Guaranteed

The maximum payment doesn't mean every eligible family will receive $5,000 as the refund depends on the unused credit available to that family, and only qualifying taxpayers can receive the money.

IRS chief executive officer Frank Bisignano said that, “By issuing refunds without requiring eligible families to file an amended return, the IRS is helping reduce the financial burden on those who decided to adopt a child into their family,” adding, “This administrative change will help families access the tax benefits they are entitled to as quickly and simply as possible,” as quoted by The Sun.