In 2013,Jennie receives $12,000 of which $3,000 is earnings)from a Qualified Tuition Program.She uses the funds to pay for new furniture for her apartment.What amount is taxable to Jennie?

Question

Quizplus · Accepted Answer

The amount that is taxable is only the portion used for non-qualified expenses, which in this case is $9,000 ($12,000 total minus $3,000 used for qualified tuition). Therefore, the correct answer is C.

In 2013,Jennie Receives $12,000 of Which $3,000 Is Earnings)from a Qualified