Which of the following is considered taxable income under miscellaneous income?

Royalties are considered taxable income under miscellaneous income because they represent payments made to an individual for the right to use their intellectual property, such as copyrights, patents, and trademarks. This type of income does not fall under the category of regular employment wages, dividends, or interest, which have their own specific classifications for tax reporting purposes.

In the context of taxes, miscellaneous income is typically categorized as income that does not fit neatly into predefined categories like wages or investment income. Therefore, royalties are specifically mentioned as taxable under miscellaneous income because they can arise from a variety of sources, like book or music sales, and are treated differently from routine employment-derived income or standard investment earnings. Understanding this distinction is crucial for accurate tax reporting and compliance.