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" includes any medical and hospital expenses of the adoptee and the adoptee's biological mother which are incident to the adoptee's birth. This also includes subsequent medical care expenses which are paid or incurred before the petition is granted in the case of the adoptee. Adoption agency fees are not deductible.

The expenses allowed on your 2012 return are limited to those expenses paid or incurred on or after January 1, 2012, even though adoption proceedings may have begun before this date.

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.