The Earnings from a Qualified State Tuition Program Account Are

question 27

True/False

The earnings from a qualified state tuition program account are deferred from taxation until they are used for qualified higher education expenses.At that time, the amount taken from the fund must be included in the gross income of the person who contributed to the account.

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Definitions:

Corporation

A legal entity separate from its owners that is authorized to conduct business, own assets, incur liabilities, and pay taxes.

Limited Liability

A legal structure that limits the personal financial risk of the business owners, protecting their personal assets from the debts and liabilities of the business.

Sole Proprietorship

A business owned and operated by a single individual, with no distinction between the business and the owner.

Closely Held Corporation

A type of company that is owned by a small group of people who are usually closely associated with the business.