Overview
A Social Security Number (SSN) is a nine-digit number issued to U.S. citizens, permanent residents, and certain temporary residents by the Social Security Administration (SSA). This number is primarily used to track individuals for Social Security purposes, but it has become a de facto national identification number for various other purposes such as taxation and financial transactions. The SSN is the individual’s counterpart to the Employer Identification Number (EIN), used for businesses and other entities.
Examples
- Employment Identification: An employer uses an employee’s SSN to report earnings to the IRS and the Social Security Administration, ensuring that the employee earns credit towards Social Security benefits.
- Filing Taxes: Individuals must provide their SSN when filing federal and state income tax returns in the U.S. The IRS uses the SSN to track an individual’s tax obligations and payments.
- Credit and Financial Services: Banks and credit institutions require an SSN to open accounts, extend credit, and report to credit agencies.
Frequently Asked Questions (FAQs)
What is the primary purpose of a Social Security Number?
The primary purpose of an SSN is to track individuals for Social Security purposes, including calculating benefits and monitoring earnings.
How are Social Security Numbers formatted?
SSNs are formatted as “XXX-XX-XXXX”, where the first three digits are the area number, the next two are the group number, and the last four are the serial number.
Can a Social Security Number be used for identification?
Yes, SSNs are often used as de facto national identification numbers due to their widespread requirement and use by governments and financial institutions.
Are SSNs assigned at birth?
Yes, SSNs are typically assigned at birth for U.S. citizens through the “Enumeration at Birth” program in partnership with hospitals and the SSA.
Can I change my Social Security Number?
Changing an SSN is possible but rare, generally occurring only under specific circumstances such as evidence of identity theft or abuse.
Do non-citizens get Social Security Numbers?
Yes, some non-citizens who are authorized to work in the U.S. or who qualify for certain benefits can receive an SSN.
Related Terms
- Employer Identification Number (EIN): A unique identifier assigned to businesses for tax purposes by the IRS.
- Individual Taxpayer Identification Number (ITIN): A tax processing number issued by the IRS for certain nonresident and resident aliens, their spouses, and dependents who cannot get an SSN.
- Taxpayer Identification Number (TIN): A generic term for any type of number used for tax identification, including SSNs, EINs, and ITINs.
- Social Security Administration (SSA): The U.S. government agency responsible for issuing SSNs and administering Social Security benefits.
Online Resources
- Social Security Administration Official Website
- IRS Taxpayer Identification Numbers (TIN)
- Apply for an SSN
Suggested Books for Further Studies
- “Social Security For Dummies” by Jonathan Peterson
- “Get What’s Yours: The Secrets to Maxing Out Your Social Security” by Laurence J. Kotlikoff, Philip Moeller, and Paul Solman
- “The Social Security Administration’s Death Master File: History, Uses, and Implications” by U.S. Congress
Fundamentals of Social Security Number: Personal Identification Basics Quiz
Thank you for taking a deep dive into the intricacies of Social Security Numbers with us. Your understanding of this fundamental identifier is crucial for navigating various financial and legal systems!
