Legal Definitions - Social Security Number (SSN)

A Social Security Number (SSN) is a unique nine-digit identification number issued by the U.S. government to U.S. citizens, permanent residents, and temporary working residents.

Initially established to track an individual's earnings history for Social Security benefit calculations, the SSN has evolved into a widely used identifier across various sectors. While the physical Social Security card itself is not considered proof of identity because it lacks personal details like a photo, the number is routinely requested by government agencies and private businesses to verify identity, manage financial records, and process applications.

Individuals can obtain an SSN and the corresponding card free of charge by completing Form SS-5 and providing documentation that proves age, identity, and U.S. citizenship or immigration status.

Here are some examples illustrating the application of a Social Security Number:

• Employment and Taxation: When Liam starts a new job, his employer requests his SSN. This allows the employer to accurately report Liam's wages to the Internal Revenue Service (IRS) for tax purposes, withhold appropriate taxes, and contribute to his Social Security earnings record, which will eventually determine his eligibility for future Social Security benefits.

  Explanation: This demonstrates the SSN's fundamental role in tracking an individual's earnings and tax contributions, directly linking to its original purpose of managing Social Security entitlements.

• Financial Transactions:Sophia decides to open a new checking account at a local bank. During the account opening process, the bank asks for her SSN. This is used to verify her identity, conduct credit checks if applicable, and report any interest earned on her account to the IRS, fulfilling regulatory requirements.

  Explanation: This illustrates how private financial institutions utilize the SSN for identity verification, financial record-keeping, and compliance with federal reporting obligations, showcasing its expanded use beyond government benefits.

• Accessing Government Services:Marcus is applying for federal student aid to help pay for college tuition. The Free Application for Federal Student Aid (FAFSA) form requires his SSN. This allows the Department of Education to verify his identity, check his eligibility for various grants and loans, and link his financial aid records accurately.

  Explanation: This example highlights the SSN's use by other government agencies to identify individuals, determine eligibility for programs, and manage records efficiently, reflecting its broad application as a national identifier.