Which of the Following Statements Regarding Qualified Tuition Programs Is

question 74

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 qualified education expenses.
• C)Income earned by a qualified tuition program is tax-free if the distribution is used to pay for $10,000 of tuition at private elementary or high schools.
• D)Contributions to a qualified tuition program are distributed tax-free.

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Definitions:

Cryonics

The low-temperature freezing (usually at −196°C) of a human corpse or severed head, with the speculative hope that resurrection may be possible in the future.

Cremation

The process of burning the dead body to ashes as part of funeral rites.

Long-term Care

Long-term care involves a variety of services designed to meet a person's health or personal care needs during a short or long period of time, typically for individuals who are unable to perform everyday activities independently.

Daily Living

Activities and tasks that a person engages in on a day-to-day basis, including personal care, household tasks, work, and leisure activities.