Taxable income includes all of the following except _____.

Taxable income encompasses all the income sources that are subject to taxation under the law. This includes tips earned at work, wages from a job, and interest earned from savings accounts, all of which contribute to a person's total taxable income.

On the other hand, exemptions for each child do not count as taxable income. Instead, they serve as deductions that reduce the amount of income subject to tax. Exemptions help to decrease the overall tax liability but are not included in the calculation of taxable income itself. Therefore, they do not add to the income that the government will tax, making this option the correct choice for identifying what is excluded from taxable income.