Which of the following categories does gross income exclude?

Gross income encompasses all income received in the form of money, goods, property, and services that are not explicitly exempt from taxation. However, tax-exempt income stands apart because it is specifically designated by law as not subject to federal income tax. This means that while ordinary wages, interest income, and capital gains are all included in an individual's gross income for tax purposes, tax-exempt income is excluded from that calculation as it does not contribute to taxable income. Examples of tax-exempt income might include certain municipal bond interest or gifts and inheritances. The key understanding here is that the Internal Revenue Code provides specific guidelines on what counts as gross income and tax-exempt income falls outside that scope.