Which of the following is not considered taxable income?

Gifts from friends are not considered taxable income in the context of federal income tax. Under the IRS rules, gifts received from individuals are generally not subject to income tax for the recipient. This is based on the principle that the giver, rather than the receiver, is responsible for any applicable gift taxes, which typically come into play only when a gift exceeds the annual exclusion limit.

In contrast, salaries and wages, interest income, and dividends are all forms of compensation or returns on investment and are considered taxable income. Salaries and wages are earned income received for services rendered, interest income is earned from savings accounts or investments, and dividends are received from shares of stock. All of these sources increase the taxpayer's total income and are taxable unless specifically exempted under tax law.