Schedule AAC: Alabama Adoption Tax Credit (2025)
Alabama · Alabama DOR · Used for tax years 2025
Schedule AAC calculates the 2025 Alabama Adoption Tax Credit. It records information about eligible adopted children and calculates a credit of $2,000 per qualifying Alabama-resident adoptee and $1,000 per qualifying nonresident adoptee, with the total reported on Schedule OC.
Who files this form
Schedule AAC is used to calculate the Alabama Adoption Tax Credit. The form covers adoptive parents who reside in Alabama and have an eligible child in either category:
- Part I: The child was an Alabama resident and was either a qualified foster child or adopted through a private adoption.
- Part II: The child was adopted through an out-of-state adoption or was otherwise not an Alabama resident.
Adopting children of either parent does not qualify for the credit.
What you'll need
Have the following information ready to complete Schedule AAC:
- Name or names as shown on the tax return.
- Primary taxpayer’s and spouse’s Social Security numbers.
- Each eligible child’s name, Social Security number, and effective date of adoption.
- Birth mother’s name.
- Adoption agency’s name and address.
The form does not specify supporting documents to attach.
How to file
Schedule AAC can only be submitted or printed in landscape orientation. The supplied form does not state a mailing address or an e-file procedure.
To complete the credit calculation:
- Enter eligible children’s information in Part I or Part II, according to their residency and adoption category.
- In Part III, line 1, multiply the number of qualifying adoptees from Part I by $2,000.
- On line 2, multiply the number of qualifying adoptees from Part II by $1,000.
- Add lines 1 and 2. Enter the total on line 3 and on Schedule OC, Section B, Part M, line M1.
Common mistakes
- Using portrait orientation: The form says it can only be submitted or printed in landscape orientation.
- Claiming the credit for adopting a child of either parent: The form specifically says these adoptions do not qualify.
Questions people ask
How much is the credit for each qualifying adoptee?
The form calculates $2,000 for each qualifying adoptee listed in Part I and $1,000 for each qualifying adoptee listed in Part II.
Can an adoption qualify if the child was not an Alabama resident?
Part II covers eligible children adopted through an out-of-state adoption or otherwise not residents of Alabama. The adoptive parent or parents must reside in Alabama.
Does adopting a child of either parent qualify?
No. Both Part I and Part II state that adopting children of either parent does not qualify for the adoption credit.
Where do I enter the total credit?
Enter the total on Schedule AAC, Part III, line 3, and on Schedule OC, Section B, Part M, line M1.