Answers will be posted in responses section in about 1 week.

This is for my own review and organization of class notes for a tax course I am taking right now.

1 What does the term non refundable credit mean?

2 What does the term refundable credit mean?

3 What requirements must be met for a taxpayer to be able to claim a credit for dependant care expenses?

4 Who are qualifying persons?

5 Generally, the taxpayer must be able to claim the child as a dependant to claim the child care credit. What is the exception to this rule?

6 What is earned income?

7 What are the exceptions to the rule that, if married, both spouses must have earned income?

8 What is the earned income of the unemployed spouse considered to be?

9 Why is it necessary that the unemployed spouse be considered to have earned income?

10 A taxpayer paid $500 of a taxpayer's $2000 child care expenses. How will the employer's assistance affect the child care credit?

11 Where does the employer report the amount of assistance to the taxpayer?

12 Is the credit refundable or non refundable?

13 What is the purpose of schedule H?

14 What are some examples of household employees?

15 How do we determine if employers of household help must pay SS and medicare tax on wages to household employees?

16 What is the maximum amount for the adoption credit and exclusion for 2007?

17 In what year will the credit be claimed?

18 What types of expenses qualify for the adoption credit?

19 What types of expenses do not qualify?

20 Name the two education credits.

21 For whose qualified educational expenses may these credits be claimed?

22 Can a dependant claim these credits?

23 Can the taxpayer claim both credits for the same student for the same year?

24 What expenses generally qualify?

25 What effect does a non taxable scholarship or grant have on the credits?

26 At what levels are the education credits phased out?

27 Which students are eligible for the hope credit?

**Jade graduated from her HS in the spring of 2007. She began attending State U on a full time basic in the fall of 2007.

28 for which years may Jade claim the hope credit for qualified educational expenses?

29 My she claim the hope credit in all of those years?

30 How is the hope credit calculated?

31 Is the hope credit always more advantagous than the lifetime learning credit?

32 Which students are eligible for the lifetime learning credit?

33 How is the credit calculated for 2007?

34 Consider Jade from previous example. Could she claim the lifetime learning credit for all 5 years in which she attends State U?

35 Which form is used to compute the educational credits?

36 Which taxpayers are not entitled to claim a retirement savings contribution credit?

37 Which contributions qualify for the savers credit?

38 What types of distributions will reduce the amount eligible for the saver's credit?

39 What is the maximum amount of contributions on which the saver's credit may be based?

40 What are the rates for the saver's credit?