Which of the following is NOT an example of income that would be subject to tax?

Military allowances are typically provided to service members and can include various types of compensation such as base pay, housing allowances, and other benefits. While certain allowances may be tax-exempt or have special rules regarding their taxation, they are often not categorized as taxable income like interest income, rental income, or dividends.

Interest income, rental income, and dividend income are all considered taxable income under federal law. Interest income is earned from bank accounts, bonds, or other interest-bearing investments. Rental income can be generated from leasing property, and dividends are payments made to shareholders from a corporation's profits. All of these types of income are clearly defined in tax laws and are therefore subject to taxation.

In contrast, military allowances can vary widely in their tax treatment, depending on the specific nature of the allowance and the circumstances surrounding it. The understanding of these differences is key for handling various income types correctly when preparing taxes.