Mother participated in a qualified state tuition program for the benefit of her son.She contributed $15,000.When the son entered college, the balance in the fund satisfied the tuition charge of $20,000.When the funds were withdrawn to pay the college tuition for her son, Mother must include $5,000 ($20,000 - $15,000) in her gross income.

Question

Quizplus · Accepted Answer

When funds are withdrawn from a qualified state tuition program and used for qualified education expenses, they are not included in the beneficiary's (son's) gross income or the account owner's (mother's) gross income. Therefore, the correct answer is B-False.

Mother Participated in a Qualified State Tuition Program for the Benefit