No. The IRS form instructions dont specify requirements for how the adoption takes place. You can take an adoption credit on the federal tax return if you meet all of the requirements. Please refer to the following FAQs for additional information about the requirements as well as how to enter these expenses in Turbo Tax. https://ttlc.intuit.com/replies/3302188
The Alabama form instructions dont specify requirements for how the adoption takes place so you can take the deduction if your expenses meet the requirements. According to page 16 of the form instructions under the heading, "line 5: adoption expenses", "....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 instructions identify what medical expenses are deductible. Additionally, if you were only a resident of Alabama for part of the year, then you can only deduct the expenses that were paid or incurred while you were a resident of Alabama. https://revenue.alabama.gov/incometax/2016_forms/16f40bk.pdf