What is a social security number? Also known as SSN, SSN meaning implies that it is a numerical identifier that every US citizen is assigned and other residents so that their income can be tracked and their benefits decided upon.
Although the SSN was introduced so that you could track the earnings and extend benefits, it is used for other reasons, like tracking individuals for taxes and credit report tracking.
The Social security number example includes a nine-digit number in the form of “AAA-GG-SSSS.”
Suppose you are an individual staying in the United States. In that case, you will be asked for the SSN to be provided with credit, help you open bank accounts, enjoy and avail of government benefits, and use for significant expenses, to name a few instances. More about how the social security number works in the paragraphs that follow.
How does the Social Security Number Work?
Excluding a few instances, every citizen of the United States, temporary or permanent working residents, and permanent residents have a social security number. Even residents who are not working, citizens, and non-citizens are eligible to obtain SSN since it offers many valuable benefits.
Given below are a few instances when you find social security number working for you.
1. Opening an account with a financial institution in the United States
Since your Below1970, the federal government has required banks to record the customers’ social security number (SSN) or (ITIN) or Individual Taxpayer Identification Number. The financial institutions’ for- uses the SSN
- Checking your credit
- Report to the IRS your income, loss, and interest earned
- It also helps in keeping track of your tax-deductible mortgage interest
- Manage your accounts
2. While applying for a federal loan
The government will use the social security number when you apply for a federal loan. This is done to ensure that you are eligible. This usually happens for a federal student loan. For instance, to qualify for the federal student loan, you must not have defaulted on any other federal loan if you have availed in the past. You should have visitor status or citizenship. Also, male applicants must register with Selective Service.
3. Availing and applying for public assistance
Unemployment benefits and social security disability income fall within the purview of public assistance programs. These programs are managed by the state as well as the federal governments, and they use the SSN to ensure that individuals claiming the benefits are eligible and entitled to.
5. For Medicare enrollment
It is for medicare and Medicaid programs.
6. Applying for Passport
For applying for a US passport, you must have a social security number. The federal law requires you to provide details of the same.
Aside from the above, the other instances when you need SSN to include-
- For tax return
- Applying for a driver’s license, and so on.
You must know all the essential aspects of social security number. In this way, you can make the best use of social security number, to say the least.
