Benefits of SSN
Benefits of SSN
A social security number, also known as SSN is a number issued to all U.S citizens including both temporary and permanent residents. The number is issued by an independent body of the federal government and is primary used to track working individuals for taxation. Listed below are the benefits of having a social security number.
1. Taxation purposes
I am sure you’ve noticed that every month your employer withholds Medicare taxes and Social Security from your paycheck. For your information, your employee often sends a certain amount to the IRS through your social security number. On the other hand, those who are self-employed are required to pay their taxes in installments.
When you earn a decent salary and pay your taxes without fail, you can earn ÃƒÂ¢Ã¢â€šÂ¬Ã‹Å“’credit”. This is important and can help you qualify for an array of benefits in future. For example, you can earn 4 credits per year and 40 credits after 10 years, which directly means you qualify to receive retirement benefits.
3. Prevents identity theft
A social security number can protect you from cyber attack or identity theft. In most cases, your social security number is required by baking institutions to obtain loans, open up a bank account and apply for credit cards since it is presumed that your details will remain confidential.
A social security number is commonly used as a form of identification in many countries, although there are rare cases where duplicates exist. Students, patients, and employee records are also indexed by SSN. The U.S army, on the other hand uses the social security numbers to identify soldiers and their respective ranks. Since nearly all countries emphasize the importance of a social security number, it now becomes easy to track people for taxation purposes.
Identity theft still remains an issue of concern because fraudsters online hack users accounts and use their Social Security numbers to obtain sensitive information.
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Written by : Harri Daniel and updated on June 27, 2011