26.Gina receives a $2,900 distribution from her educational savings account. She uses $1,500 to pay for qualified higher education expenses and $1,400 on a vacation. Immediately prior to the distribution, Gina’s account balance is $5,000, $3,000 of which is her contributions. What is Gina’s taxable income (after any exclusion) from the distribution? $1,400 $560 $840 $0
26.Gina receives a $2,900 distribution from her educational savings account. She uses $1,500 to pay for qualified higher education expenses and $1,400 on a vacation. Immediately prior to the distribution, Gina’s account balance is $5,000, $3,000 of which is her contributions. What is Gina’s taxable income (after any exclusion) from the distribution? $1,400 $560 $840 $0
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 24MCQ
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Question
26.Gina receives a $2,900 distribution from her educational savings account. She uses $1,500 to pay for qualified higher education expenses and $1,400 on a vacation. Immediately prior to the distribution, Gina’s account balance is $5,000, $3,000 of which is her contributions. What is Gina’s taxable income (after any exclusion) from the distribution?
- $1,400
- $560
- $840
- $0
27.
Which of the following is correct for Qualified Tuition Programs (Section 529 plans)?
- Contributions are deductible, and qualified educational expense distributions are tax free.
- Contributions are not deductible, and qualified educational expense distributions are tax free.
- Contributions are deductible, and qualified educational expense distributions are taxable.
- Contributions are not deductible, and qualified educational expense distributions are taxable.
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