The Social Security Number is a 9 digit number issued to US Citizens , permanent US residents and persons holding temporary US work permits. These are provided by the Social Security Administration under section 205 © (2) of the Social Security Act . The Social Security Number is a verifying code for the tax filers.
Unlike EIN or Employer Identification Number, which is for partnerships, businesses, and trusts, SSN is for individual payers. Having this number is mandatory for all individual filers and dependents.
Eligibility for SSN
There is an eligibility criterion for all tax filing elements. A person can apply for an SSN from their Social Security account if they are:
How to apply for SSN?
The process for applying for SSN is very easy; you just have to follow these steps:
After this process, you will receive your Social Security Number within 2 to 3 weeks. The documents will be mailed to you at the provided mailing address.
However, if you are an immigrant with an H1B visa, then you will have to submit the following documents:
Is it mandatory to have SSN for Tax Filing?
Keeping a few exceptions, any citizen or legal resident living & working in the United States must have a Social Security Number. After their introduction in 1935, SSN has undergone a lot of change and is now applicable to all individuals and is asked by many businesses in the country.
Importance of SSN in your Tax Filing
The National government uses the SSN to ensure that the candidate is eligible for filing their returns in a Federal Loan. This also includes the Federal Student Loan. Furthermore, the IRS demands this code to analyze your tax filing and income.
They use this to match your actual income with the amount you file in the returns. Also, one has to provide their children’s Social Security Number if they wish to claim that their child is a dependant.
What if wrong SSN is declared to IRS in your Tax Filing? How can it be corrected?
If you have mentioned an incorrect SSN, then you can apply for an amended tax return. For this, you must use Form 1040X, which is easily available on the Internal Revenue Service’s website. Use Part III of the form to provide a reason for filing amended returns. For your number, you can write the correct number on the top of the form.
However, for changing the dependant’s SSN, you will have to correct it in line 29. For every tax year, you will have to file this Form separately. But, this makes your filing process easier, as you will just add the correct information and describe the reason in the 3rd Part.