Martha Invested $6,000 in a Qualified Tuition Program for the Benefit

question 94

Multiple Choice

Martha invested $6,000 in a qualified tuition program for the benefit of her son.Four years later her son withdrew $8,000, the entire balance in the program, to pay his college tuition.

• A)Martha is not required to include the $2,000 ($8,000 - $6,000) in her gross income when the funds are used to pay the tuition.
• B)Martha's son must include the $2,000 ($8,000 - $6,000) in his gross income when the funds are used to pay the tuition.
• C)Martha must include $8,000 in her gross income.
• D)Martha's son must include $8,000 in his gross income.
• E)None of these.

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Definitions:

Social Practice

Repeated actions or behaviors that are accepted and shared by a group or society.

Compliance

The action or process of complying with a command, law, or request.

Parenting Style

The manner in which parents raise and guide their children, characterized by various approaches such as authoritative, permissive, and authoritarian.

Working-Class

A social group consisting of people employed in lower-tier jobs, often involving manual labor and receiving lower pay.