Adoption Credit.
Beginning January 1, 1991, the reasonable medical and legal expenses paid or incurred by the taxpayer in connection with the adoption of a minor may be deducted as an adjustment to income. The term “medical expenses” include any medical and hospital expenses of the adoptee and the adoptee’s biological mother which are incident to the adoptee’s birth, and subsequent medical care and which, in the case of the adoptee, are paid or incurred before the petition is granted. Adoption agency fees are not deductible. The expenses allowed on your 2021 return are limited to those expenses paid or incurred on or after January 1, 2021, even though adoption proceedings may have begun before this date. A resident of Alabama for only a part of 2021 may deduct only those expenses paid or incurred while a resident of Alabama. Accurate records of all expenses claimed as an adjustment to income must be maintained by the taxpayer and be available to the Alabama Department of Revenue upon request.