Which of the following is NOT considered a nonpassive income type?

Nonpassive income refers to earnings that are generated from active participation in a business or investment activity. This type of income typically includes wages, salaries, tips, commissions, and certain types of interest and dividend income.

Income from passive investments, however, is classified differently. It generally includes revenue generated from limited partnerships, rental properties, and other ventures in which the investor is not involved in the day-to-day operations. Therefore, income from passive investments does not fall under nonpassive income since it doesn't require the active engagement of the investor.

Interest from bank accounts, dividends from stocks, and commissions from sales all represent forms of active income. Individuals earn these incomes through direct actions, such as making deposits, investing in stocks, or actively selling products, thus qualifying as nonpassive.

Recognizing the distinctions between types of income is crucial for understanding how different revenues are taxed and reported on tax returns.