Are income distributions from a qualified state tuition program taxable?

A.

Income distributions from a qualified state tuition program are never taxable to a taxpayer.

B.

Income distributions from a qualified state tuition program are taxable when income distributions exceed 90% of all educational expenses for the year.

C.

Income distributions from a qualified state tuition program are taxable only to the extent the income distributions exceed qualified education expenses.

D.

Income distributions from a qualified state tuition program are always fully taxable to a taxpayer.