Which of the following is not included in gross income?

Life insurance proceeds are not included in gross income because they are specifically excluded from taxation under the Internal Revenue Code. When a beneficiary receives a death benefit from a life insurance policy, that amount is considered a non-taxable event. The reasoning behind this exclusion is to provide financial relief to the beneficiaries at a time of loss, making it so they do not have to pay tax on funds meant to support them after the death of the insured individual. Therefore, when assessing which items contribute to gross income, life insurance proceeds stand out as a form of financial benefit that is not taxable.

In contrast, alimony received, unemployment compensation, and interest on savings accounts are all included in gross income under federal tax laws. Alimony received is considered income to the recipient, while unemployment compensation is treated as taxable income for the benefit that it provides during periods of joblessness. Interest from savings accounts is also taxable as ordinary income since it represents earnings on funds held in the account.