Starting in 1991, the expenses incurred by a taxpayer in connection with the process of an adoption may be taken as an adjustment to income.
Adoption agency fees are not deductible.
The allowable expenses are limited to the amount that was paid or was incurred during the tax year only. If you are a part-year resident, you can claim only the expenses for the time you were considered a resident. The state may request proof of the expenses at any time.
Where to enter?
- State Section
- Adjustments to Income
- Qualified Adoption Expenses Paid or Incurred
For more information, you may view the Alabama Form 40 Instruction Booklet.