Which of the Following Statements Regarding Qualified Tuition Programs Is

question 81

Multiple Choice

Which of the following statements regarding qualified tuition programs is incorrect?

• A)Distributions from income earned by a qualified tuition program are tax-free if used for qualified higher education expenses.
• B)Distributions of income are taxed to the donor if the proceeds are not used for higher education expenses.
• C)A qualified tuition program may be established by parents or grandparents.
• D)Contributions to a qualified tuition program are distributed tax-free.

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Definitions:

Stressful Experience

An event or situation that significantly challenges an individual's ability to cope, potentially leading to psychological stress and physical health problems.

Family's Life

Refers to the everyday events, interactions, and relationships that occur within a family unit.

Primary Wage Earner

The primary wage earner is the person in a household responsible for contributing the majority of income to sustain the family's living expenses.

Mother

A female parent or individual who fulfills the role of nurturing and raising a child.