Which of the following is generally considered taxable income?

Wages and dividends are generally considered taxable income because they represent compensation for services rendered (in the case of wages) and a share of profits distributed to shareholders (in the case of dividends). The Internal Revenue Service (IRS) categorizes both wages and dividends as income that individuals must report on their tax returns, which is subject to federal income tax.

Life insurance payouts, gifts, and child support payments are not typically included in taxable income. Life insurance benefits received by beneficiaries upon the death of the insured are generally not taxable. Similarly, gifts received from family members fall under a non-taxable category, as the IRS does not impose income tax on financial gifts. Child support payments are also not considered taxable income for the recipient, as they are intended to support the child's needs rather than provide income.

Thus, the classification of wages and dividends as taxable income distinguishes them from these other types of financial support or benefits, which are exempt from taxation.