Social Security Number- Why Do You Need it in the US?
Everyone who knows America probably knows what’s a Social Security Number. As one of the strongest economies in the world, the United States of America is on everyone’s bucket list. There are so many things about the country that are pretty unique and intrigue people worldwide. One such thing is their nine-digit personal identification number, Social Security Number (SSN). Let's see what this is all about in more detail.
What is a Social Security Number?
It is a nine-digit number, unique for every US citizen and some eligible residents. The main purpose of this identifier is to track to allow the government and citizens to track financial income and get benefits. In essence, it is a continuous link between people and their social security.
While the main purpose remains the same, a social security number card is also used for various other reasons like opening a bank account, getting a credit card, etc. Read on to know more.
When do you need a Social Security Number?
If you are planning to stay and work in America, it is imperative that you get your SSN, which is like the de facto national identification. It is one of the most important documents to have second only to work permit and visa. Here are 6 situations where you will need your SSN.
When you get hired by an American company
The moment you get a job, you will have to provide your SNN. Using this number, your employer's finance team will intimate the Internal Revenue Service or IRS about your income and your contributions to social security wages to the SSA (Social Security Administration). So, it is best to apply for social security number as soon as you get a confirmation from your prospective employer.
When you apply for a housing loan or any other federal loan
If you have lived in the US for a considerable amount of time, you must have realized how easy and financially smart it is to own a house. With the right planning and a great house loan facility, you can be one step closer to living your American Dream (complete with a porch and a dog!). One of the most important requirements for a loan is a good credit score. Credit providers will need your SSN to check your eligibility.
When you open a bank account in the US
If you are employed in America, opening a bank account is probably one of the first things you will have to do. Since 1970, it is mandatory for all financial institutes in the US to get SSNs of all their customers. Banks and other financial institutes use the social security number to check your credit score, update your axillary income via interests or investments, and for the overall maintenance of your account. Because a bank account is such an important thing, is it wise to opt for agencies that provide SSN services to make it hassle-free.
When you file your income tax return
All tax returns based on income fall under the responsibilities of the IRS (Internal Revenue Service). They keep track of your income (salaried as well as self-generated) through your Social Security Number. You will have to declare your SSN in your income tax file.
Pro-tip: If you have children and you wish to get dependent child benefits, declare their SSNs as well.
When you apply for a driving license
Planning to go on the famous Highway 12, Utah route? Be sure to get your driving license first! If you are a US citizen, you will need your SSN for even this. Non-citizens are exempted from this.
If you've watched enough American crime movies, you probably know how important is a Social Security Number or SSN. Every US citizen has one. And if you learned anything from those crime documentaries or movies, you know better than to mess with it.
Hope this was a great read!