A husband and wife are self-employed and have 3 children, ages 4, 7, and 9. They have a combined income of $300,000. They wish t
o open Coverdell ESAs for each of their children to pay for qualified education expenses. Which statement is TRUE
1 answer:
Answer:
The correct answer is they are prohibited from opening an account for each child because they earn much.
Note: Kindly find an attached inage of the complete question stated here.
Sources: the image or pictures was researched from Quizlet and Course hero
Explanation:
Solution
Now,
The answer to the question given as follows:
(a) False: The contribution made to ESAs is not tax-deductible. Also, they are not allowed to contribute to ESAs due to high income.
(b) False: The contribution made to ESAs is not tax-deductible but they are not allowed to contribute to ESAs due to high income.
(c) True: Since they have a combined income of $300,000, therefore they are prohibited to open an account for each child under ESAs.
(d) False: There is no such condition that ESAs accounts cannot be opened by self-employed individuals.
You might be interested in
Answer:
e. $20
Explanation:
The net asset value (N) for The New American Enterprise Mutual Fund's portfolio is given by the funds total value ($120,000,000) subtracted by its liabilities ($4,000,000) and then divided by the number of shares issued (5,800,000) .
The fund's net asset value is $20