What type of income generally does not require active participation from the taxpayer?

Passive income is the type of income that typically does not require active participation from the taxpayer. This kind of income is generated from investments or business activities in which the taxpayer is not actively involved. Examples of passive income include rental income from properties and earnings from a business in which the taxpayer does not materially participate.

On the other hand, active income involves compensation for services such as wages, salaries, or bonuses, where the taxpayer must perform work or have a hands-on role. Earned income is similar, as it is derived from employment or self-employment, which inherently demands active participation from the individual. Investment income, while it may seem similar to passive income, can vary as it often requires some level of active management, especially in cases where an investor is directly involved in trading or managing investments rather than simply collecting dividends or interest without intervention.

Given these definitions, passive income distinctly stands out as the category that allows for income generation with minimal or no active engagement by the taxpayer, making it the correct choice in this context.