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Which statement about qualified tuition programs (529 plans) is TRUE? Taxpayers may contr…

Nov 29, 2025 | Posted Assignments

Which statement about qualified tuition programs (529 plans) is
TRUE?

Taxpayers may contribute on behalf of a
nondependent.  

Contributions are limited to $2,000 per student per year.

Contributions are deductible for federal income tax
purposes.

Earnings grow tax-deferred but are always taxed at
distribution.

How much of the American Opportunity Credit is refundable?

Maximum $2,500.

20% on up to $10,000 of expenses.

40% of expenses up to $1,000.

50% of the first $4,000 of expenses.





Which statement about qualified tuition programs (529 plans) is
TRUE?

Taxpayers may contribute on behalf of a
nondependent.  

Contributions are limited to $2,000 per student per year.

Contributions are deductible for federal income tax
purposes.

Earnings grow tax-deferred but are always taxed at
distribution.

How much of the American Opportunity Credit is refundable?

Maximum $2,500.

20% on up to $10,000 of expenses.

40% of expenses up to $1,000.

50% of the first $4,000 of expenses.





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