All of the following are true about 2021 distributions and contributions to Section 529 plans EXCEPT: a) A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions. b) Distributions may be used to pay the costs of participation in a registered apprenticeship program. c) Distributions may be used to pay up to $10,000 in qualified student loans. d) Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income.

All of the following are true about 2021 distributions and contributions to Section 529 plans EXCEPT: a) A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions. b) Distributions may be used to pay the costs of participation in a registered apprenticeship program. c) Distributions may be used to pay up to $10,000 in qualified student loans. d) Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 9DQ

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