What Is an SSN? Facts to Know About a Social Security Number

A Social Security Number (SSN) is a unique nine-digit identification number issued by the U.S. Social Security Administration (SSA). It’s used to track your earnings, manage retirement benefits, and also serve as a tax identification number (TIN) for filing taxes. In this guide, we’ll cover why your SSN is essential and provide tips on how to keep it safe.

Key Takeaways:

• The SSN is used to report your income to the Internal Revenue Service (IRS).
• It’s required when applying for a credit card, opening a bank account, and enrolling in health insurance.
• Applying for an SSN is easy and free. You can download the application from the SSA website and prepare your documents ahead of time.

A Brief History of the SSN

President Franklin D. Roosevelt signed the Social Security Act of 1935, establishing the Social Security program to provide financial assistance to retired workers. The SSN was created to track individuals’ earnings and determine eligibility for benefits.

How the SSN’s purpose evolved:

• 1935: The Social Security Administration (SSA) was established, and SSNs were created to track workers’ contributions to Social Security.
• 1936: The first SSNs were issued, and the program expanded to other areas of identification in addition to Social Security purposes.
• 1962: The IRS adopted SSNs for tax purposes. The year before that, the Civil Service Commission used SSNs as identifiers for federal employees.
• 1996: The IRS introduced the Individual Taxpayer Identification Number (ITIN) for individuals who need to file U.S. taxes but aren’t eligible for an SSN, including non-U.S. citizens without work authorization.
• 2000s-Present: Today, the SSN is used for everything from filing taxes and applying for credit cards to opening bank accounts and verifying identity in healthcare and employment

SSN format changes:

• Pre-2011: SSNs had three parts: the Area Number (linked to geography), Group Number (administrative purposes), and Serial Number (issued sequentially).
• Post-2011 Randomization: The SSN format (###-##-####) remains, but numbers are now randomly generated without geographical or sequential patterns.

How to Obtain an SSN

Who Can Apply for an SSN

• U.S. Citizens: All citizens of the United States, including children, can apply for an SSN.
• Non-U.S. Citizens: Lawful permanent residents, like green card holders, temporary residents with work visas, such as O-1 or P-1. Generally, only non-U.S. citizens who have authorization to work in the U.S. are eligible for an SSN.

Requirements for U.S. Citizens and Non-U.S. Citizens

U.S. citizens must provide proof of citizenship, such as an American birth certificate and passport, and evidence of their age and identity, like a driver’s license.

Non-U.S. citizens applying for work purposes must show proof of legal immigration status and work eligibility, including documents such as a passport, visa, green card, and work permit

Application Process

• Complete Form SS-5: Download this form from the SSA website.
• Gather Necessary Documents: Collect all necessary documents based on your citizenship or immigration status.
• Submit Your Application: Bring the completed Form SS-5 and your documents to the local Social Security office and apply in person. Include a return address in case the SSA sends your documents back.

Once the SSA receives your application, it usually takes 2-4 weeks to receive your SSN card. Your SSN card will be mailed to the address you provided. If there are any issues or additional information is needed, the SSA will reach out to you directly.

Uses of an SSN

Identification and Verification

Your SSN is tied to your personal information across various systems and records. It helps verify your identity when you’re applying for a new job or passport, proving you are who you claim to be. Additionally, it ensures that your earnings, benefits, and other records are correctly tracked to you.

Financial and Employment Purposes

Employers use your SSN to report your earnings to the government and make sure that the withheld taxes for Social Security and Medicare are accurate. This number can also be used to track your employment history and check your credit history when applying for loans, mortgages, and credit cards.

Tax Reporting Purposes

Your SSN also serves as a TIN. The IRS uses your SSN on tax returns to monitor your income and ensure you’re reporting your earnings accurately. It helps match tax returns with income records and processes tax refunds efficiently.

Security and Privacy of Your SSN

Importance of Protecting Your SSN

Here’s why it’s vital to protect your SSN from others who may have bad intentions:

• Identity Verification: Your SSN is your unique identifier, used in applications for jobs and loans. Protecting it ensures it’s only used for legitimate purposes.
• Prevention of Identity Theft: If criminals access your SSN, they can open credit lines, and bank accounts or even take out loans in your name. Monitor your credit report and financial accounts regularly to catch suspicious activity related to your SSN.
• Tax Fraud Prevention: Scammers can use stolen SSNs to file fraudulent tax returns and claim refunds, complicating your legitimate filings and delaying any refunds you’re owed.

How to Keep Your SSN Secure

Securing your SSN at all costs avoids risking your financial resources. Do it by:

• Limiting Sharing: Only share your SSN when absolutely necessary.
• Secure Storage: Store your SSN card in a safe place—not in your wallet.
• Be Cautious with Phishing Scams: These scams involve scammers posing as legitimate institutions and tricking you into revealing your SSN through phone calls, text messages, or email. Verify the source before sharing any information.
• Dispose of Sensitive Documents Properly: Shred any papers with your SSN on them before tossing them out.
• Think about Freezing Your Credit: This blocks fraudsters from creating new financial accounts using your SSN.

What to Do If Your SSN Is Compromised

If you think your SSN has been compromised, here are some steps to protect yourself:

1. Report the Theft: File a report with the Federal Trade Commission at IdentityTheft.gov.
2. Use a Fraud Alert: Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit report.
3. Consider a Credit Freeze: A freeze prevents imposters from opening new accounts in your name.
4. Monitor Your Accounts: Regularly review your bank, credit, and other financial accounts for any unusual charges or activity.
5. Notify the IRS: Contact the IRS if you suspect your SSN has been used for tax fraud.

Parting Words

Your SSN is a key part of your identity in the U.S., connecting to both your personal and financial records. While obtaining an SSN is simple, safeguarding it is essential to protect your identity.

If you are a non-U.S. citizen, let ICONAC walk you through the steps to obtain the SSN you need to recoup your withheld taxes from earned income. When it comes to taxes, ICONAC can deliver the best tax services for artists like you. We’ll handle all the paperwork for your taxes while you create content that strikes a chord with the public.

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