A Social Security number SSN is a number that the United States government issues to its citizens and the eligible residents who apply for one.During retirement or when individuals need disability income, the government uses the information on the contributions made, and the data will be used to calculate the benefit payments. Most individuals use the same social security number their entire lives. However, in the case of identity theft, the number has to be replaced. Enlisted below are some instances where a social security number is needed.
Opening an Account With a Financial Institution
The federal government requires that banks have to obtain the social security numbers of individuals who open their accounts with them. This is because the financial institutions will use the SSN to check the credit of the individuals. They will also use it to report the interest and investment income or losses to the IRS. Some financial institutions may accept a taxpayer identification number as an alternative, but most of them require the SSN.
Application of a Federal Loan
When applying for a loan, the government will use your SSN to check if you are eligible for the credit. Examples of federal loans include a federal student loan. For instance, for you to qualify for a federal student loan, you must not have defaulted on another loan. In addition to this, you must be a citizen or have a visitor status.
Application of a Passport
The federal law requires that individuals provide their social security number if they have one while applying for the U.S passport. Individuals who do not have an SSN often experience delays in their application process. Those who have an SSN and do not provide it while applying for a passport may be fined up to $500.
Getting a Driver’s License
If you have SSN, you will need to provide it when you are applying for a driver’s license.
On the Tax Return
The IRS uses your Social Security Number to match the income that is reported on your tax return to the revenue that your employer and the financial institutions have reported having paid you. You will also need to provide your child’s SSN to claim your child as a dependent on the tax return form.
