What is one example of personal service income?

Personal service income is defined as income earned through direct services provided to clients or customers by an individual or business. Consulting fees fall into this category because they are typically paid to individuals or firms for their specialized knowledge, skills, or expertise. This type of income stems directly from the labor or professional services rendered, emphasizing the personal aspect of the service provided.

In contrast, the other options refer to income types that do not directly involve personal services. Interest from savings accounts is passive income, not earned through personal effort or service. Rental income is the result of property ownership rather than personal service, and dividends from stocks are income generated from investments, also disconnected from personal service delivery. Thus, consulting fees are the only example given that directly represents personal service income.