Final answer:
Under FICA, only wages and salaries are subject to taxation. Interest and dividends, rental income, and capital gains are not subject to FICA taxes, which fund Social Security and Medicare.
Step-by-step explanation:
The income that is subject to taxation under the provisions of the Federal Insurance Contributions Act (FICA) is wages and salaries. FICA is a federal payroll tax that is deducted from employees' paychecks and paid by employers to fund Social Security and Medicare, both major parts of the social safety net. This type of tax is considered a payroll tax, and it is mandatory for most workers and employers. Therefore, the correct answer is 1) Wages and salaries.
The type of income that is subject to taxation under the provisions of the Federal Insurance Contributions Act (FICA) is wages and salaries. FICA is a federal tax that is used to fund Social Security and Medicare programs. It is withheld from an individual's paycheck and is based on their earnings.
Interest and dividends, rental income, and capital gains are typically subject to different types of taxes, such as income tax or capital gains tax, but are not subject to FICA taxes. FICA taxes are specifically tied to earned income from employment or self-employment.