Social Security

The United States Social Security system ensures that all American workers will have an income when they retire or become disabled or unable to work. If you are a permanent U.S. resident or lawfully admitted alien who plans to work in America, you must apply for a Social Security number (SSN).  A Social Security number is a nine-digit identification number that the U.S. government uses to keep track of your earnings and provide you with benefits. 

• About Social Security

• Social Security Taxes

• How Does Social Security Use My Money?

• How Do I Earn Social Security?

• Types of Social Security Benefits

• How Do I Apply for a Social Security Number (SSN)?

• When Will I Receive My Social Security Card?

• Private Social Security Services

• Types of Social Security Cards

• How Do I Apply for a Social Security Number for Non-Working Reasons?

• Keeping My Social Security Record Safe

• If Someone Else is Using Your SSN

• Benefits Available for Those Without Social Security

• Your Responsibilities

• What is Supplemental Security Income (SSI)?

• How to Avoid "Dual Social Security Taxation"

About Social Security

If you are a permanent U.S. resident or lawfully admitted alien who plans to work in America, you must apply for a Social Security number (SSN). 

• Retirement benefits,
• Disability benefits and/or
• Survivors benefits. 
  

Over time your earnings convert to “credits,” which determine how and when you can collect various benefits. 

Identification. Your Social Security number also serves as an important source of identification.  Banks and other agencies, such as schools, government agencies and businesses, use SSNs to verify a person’s identity.  You may be asked for your SSN when you rent an apartment, buy a home or apply for a credit card, among other things. 

Social Security members receive their own personal card. Be sure to keep your Social Security card in a safe place to prevent identity theft.  Applying for a Social Security card is free, and your card can be replaced through the Social Security Administration for no charge.  Apply online here.

To obtain a Social Security number contact the U.S. Social Security Administration toll-free at (800) 772-1213.

To locate the Social Security office near you, call (800) 772-1213 or search here.  SSA offices are open Monday through Friday from 7am to 7pm.  Interpreter services are available if needed.  You can also log on to the Social Security Administration website for the most up to date information about Social Security.

Social Security Taxes

Social Security is funded by payroll tax deductions. Therefore, every legal worker in America contributes to their Social Security fund.

Social Security taxes are deducted from your earnings.  Your employer withholds and pays the tax to the Internal Revenue Service (IRS).  Typically, these taxes are taken out of your salary at a rate of 7.65% (as a percentage of your wages, up to $76,200 annually).  Your employer is required to match this amount, which means that a total of 15.3% of what you earn goes to your Social Security fund. 

This money is invested in both Social Security and Medicare. Medicare coverage is a government health insurance program that covers Americans age 65 and older. When you become eligible for Social Security benefits, you may apply to the Social Security Administration to collect your benefit payments.

If you are self-employed, you are responsible for submitting your own taxes to the IRS at a rate of 15.3% of your income, although up to half of this amount can be deducted as a business expenditure. 

Some exceptions exist; if you have been temporarily reassigned by an international company from another country you may already be paying Social Security taxes. To avoid double taxation, check here to find out more about your country’s social security tax policy.

Every January, you will receive a Social Security benefit statement in the mail showing the sum of the benefits you received in the previous year. When filing your federal income tax return, you can use this statement to find out if any of your benefits are subject to tax.

How Does Social Security Use My Money?

Each month, the Social Security trust fund receives more than $5 billion from Social Security taxes, which is invested in U.S. Treasury bonds.  The U.S. Treasury is widely considered the safest investment on the globe.  But where does your money actually go?

Out of every dollar you pay in Social Security taxes and Medicare taxes, approximately 69 cents is invested in your retirement and survivors benefits, 19 cents pays for Medicare benefits, and 12 cents pays for disability benefits. Less than one cent is consumed by administrative costs of the Social Security Administration.

Your money collects interest until you are eligible for various benefits.

Some exceptions exist:

• If you work for a state or local government, you may be enrolled in a separate Social Security fund, not the main U.S. government-based Social Security fund.
• If you have a disability, you may qualify for the Supplemental Security Insurance (SSI) program, which pays benefits to disabled Americans who minimal financial assets.

How Do I Earn Social Security?

• Social Security "credits"?

• Special rules for some jobs

• Medicare credits

Social Security "credits"

When you work and pay Social Security taxes, you automatically earn "credits" toward future benefits.  Remember that employers are responsible for withholding these taxes, but if you are self-employed it is your responsibility to file Social Security taxes directly to the IRS.

The credits you earn accumulate based on the amount of your earnings.  In 2007, for example, the Social Security Administration granted one credit for each $1,000 of earnings, up to the maximum of four credits per year.

Each year the amount of earnings needed for credits increases slightly as average earnings levels in America go up.  Your Social Security record remains active even if you change your job or go through a period in which you are unemployed or earn less than usual.

Special rules for some jobs

Different rules for earning Social Security coverage apply to certain types of work.

If you are self-employed, you earn Social Security credits the same way employees do—one credit for each $1,000 in net earnings but no more than four credits per year.

Income less than $400? If you have net annual earnings under $400. For more information, go to the SSA Benefits page.

Military. If you are in the military, you earn Social Security credits the same way civilian employees do. You also may get additional earnings credits under certain conditions. For more information, go to the SSA Military Service page.

Call the SSA or visit the SSA homepage if you need answers about earning credits in your job.

Medicare credits

The Social Security credits you earn also to Medicare -- the federally funded health insurance program.  You are eligibile for Medicare payments when you reach age 65, or earlier if get disability benefits for 24 months or more.  If you have permanent kidney failure or get disability benefits because of amyotrophic lateral sclerosis (Lou Gehrig’s disease) you do not have to wait 24 months to receive Medicare coverage.

Your dependents or survivors also may be eligible for Medicare at age 65 or earlier if they are disabled. People who have permanent kidney failure and need kidney dialysis or a kidney transplant may be eligible for Medicare at any age based on a spouse’s or parent’s earnings as well as their own. If you would like to have more information about Medicare, see the Medicare page on the SSA website or call the SSA’s national toll-free number at (800) 772-1213.

Types of Social Security Benefits

There are three main Social Security categories where you can be paid. The government can pay you benefits based on the record of your earnings based on retirement, disability, and survivorship.

• Retirement benefits

• Disability benefits

• Survivor benefits

Retirement benefits

If you have a Social Security number, you are eligible to begin collecting retirement benefits at age 62.

“Full retirement age,” according to the SSA, falls between age 65 and 67, depending on the year of your birth. In some cases, there are incentives to retiring when you are older. if you wait to file your retirement claim, you can continue to accumulate Social Security credits until you are 70.

But in some cases it may not be best to delay collecting your retirement benefits.  Although delaying retirement usually equates to a modest increase in your retirement fund, it also postpones your ability to collect retirement money.  For some people, particularly those with medical problems or whose family members have medical problems, it may make sense to collect retirement money sooner rather than later. 

To help you decide on a retirement decision that’s best for you, the Social Security Administration offers an online calculator. This tool helps you evaluates your potential earnings at various retirement ages. 

You may also find it valuable to request a Social Security Statement , which shows a complete record of your lifetime earnings. 
Claiming retirement benefits can take up to three weeks. To announce your plan to claim retirement, call the SSA toll-free at (800) 772-1213. Representatives will help you make an appointment for your application to be processed over the telephone or at any Social Security office.   To finalize your claim, you will need the following information:  

• Social Security number
• Proof of U.S. citizenship or lawful alien status if you were born outside of the U.S.
• Original birth certificate (or an official reissued certificate)
• Original marriage certificate
• Recent W-2, or tax return (if you are self-employed)
• Bank account information for direct deposit of benefits
• Military discharge papers (if you served in the military)

    

Disability benefits

If you are permanently disabled under the SSA medical disability guidelines, you are eligible to collect disability benefits.  Disability benefits are typically equivalent to the amount that your full retirement benefits would be.

More than four million Americans disabled workers receive disability payments from the Social Security Administration each month.  In addition, more than 1.7 million dependents, many of them children, receive Social Security disability benefits.

The SSA defines a disability as a severe physical or mental condition that prevents a person from working.  As long as you are unable to work, the SSA will send you a monthly check to offset your losses in earnings. On average, a disabled worker receives a monthly check from the SSA for approximately $780.  For disabled workers with a spouse and two or more children, the average payment is about $1,200.

The exact amount each person receives in disability benefits is based on a person’s work history and earnings.

If you or a family member is severely disabled, the Social Security disability protection plan covers up to $201,000 for an average income earner with a spouse and two children.

Survivor benefits               

The death of a family wage earner can take a devastating financial as well as emotional toll on a family.  Survivor benefits provide moderate financial compensation to the surviving family members of working people who lose their lives. The amount of the payments are based on the earnings record and work history of the person who died. The more the worker paid into Social Security, the greater the survivors’ benefits will be.  The percentage that each survivor receives depends on the survivors’ ages and relationship to the worker. Below are some ordinary situations:

• A widow or widower, at full retirement age or older, generally receives 100 percent of the worker’s basic benefit amount;
• A widow or widower, age 60 or older, but under full retirement age, receives about 71-99 percent of the worker’s basic benefit amount; or
• A widow or widower, any age, with a child younger than age 16, receives 75 percent of the worker’s benefit amount. Children receive 75 percent of the worker’s benefit amount.                                        

About 7.4 million Americans, including nearly two million children, receive survivor benefits as the result of a spouse or parent’s death. 

On average, the amount of survivor benefits for a spouse with two or more children is equal to a $322,000 life insurance policy.  Unlike life insurance, however, survivors benefits are paid on a monthly basis, which equals about $1,400 for an average family.

Additionally, the SSA may increase the amount of survivors payments based on a family’s cost-of-living expenses.

To get an estimate of survivors benefits, visit the SSA website to request a “Personal Earnings and Benefit Estimate Statement” or call toll free: 1-800-772-1213.

If you remarry, you typically become ineligible for survivors benefits, with the exception of people who remarry after age 60 (or age 50 if you are disabled).

How Do I Apply for a Social Security Number (SSN)?

If you did not request a Social Security number or card when you applied for an immigrant visa; OR if you are applying for the first time for a Social Security number; OR if you want to replace a lost or stolen card; OR if you want to change the name on your card, then you MUST fill out Form SS-5, “Application for a Social Security Card.”  You can download this application online. You must apply in person at your local Social Security Administration office, if:

• You applied for your immigrant visa before October 2002; or
• You were under age 18 when you came to the United States; or
• You are age 18 or older and have never been assigned an SSN

Otherwise, you can submit your application in person or by mail.

• If you are a U.S. citizen

• If you are a non-U.S. citizen

• When you do not need a SSN

If you are a U.S. citizen

• U.S. passport; or
  
• U.S. Driver’s License; or
  
• State-issued non-driver identity card

If you are a non-U.S. citizen

• Permanent Resident Card (Form I-1551), including machine-readable immigrant visa with unexpired foreign passport; or
• Form I-94 with unexpired foreign passport); or
• Work permit card (I-766 or I-688B)

For more questions about applying, call the SSA’s national toll-free number at (800) 772-1213.  You can mail your application form to the SSA at:

Social Security Administration
Office of Public Inquiries
Windsor Park Building
6401 Security Blvd.
Baltimore, MD 21235

When you do not need a SSN

In the following instances you do not need to request a Social Security number:

• If you were age 18 or older when you came to the United States
• If you asked for an SSN when you applied for an immigrant visa
• If you applied for an immigrant visa on or after October 2002

When will I Receive My Social Security Card?

Once you’ve submitted your application, the SSA will assign you an SSN and mail you a Social Security card to the your U.S. mailing address. You should receive your SSN card within three weeks after coming to the United States. 

Contact the Social Security Administration if you do not get your car within three weeks, or if you change your U.S. mailing address before you receive your SSN card.

Private Social Security Services

Private businesses offer services to change or renew Social Security cards (for a spouse, newborn child, etc) for a fee. Remember that these firms are not related to the Social Security Administration or the U.S. government. Most of these firms charge a moderate fee in exchange for the superior service they can provide over the U.S. government.  However, for no fee, you can order new Social Security cards directly through the Social Security Administration.

If you decide to use a private service, make sure to check that your SSN is correct when you receive your card.

If you receive a card that looks suspect, send the package, including the envelope, to the nearest SSA office or to the headquarters, at:

Types of Social Security Cards

There are three types of Social Security cards:

• The most common type of Social Security card includes your name and Social Security number, and permits you work without restriction in the United States. This type of card is issued to U.S. citizens, OR people who are lawfully admitted to the U.S. for permanent residence, OR those with permission from the Department of Homeland Security (DHS) to work permanently in the U.S.
• The second type of card bears the legend, "NOT VALID FOR EMPLOYMENT."  This type of card is issued to people who are lawfully admitted to the U.S. but don't have DHS permission to work. You need this card if a federal or state law requires you to have a Social Security number to get a benefit or service; or if you are living in the U.S. and don't have DHS permission to work but, because you are entitled to a federally funded benefit, you are required by federal law to have an SSN to receive the benefit.
• The third type of card bears the legend, "VALID FOR WORK ONLY WITH DHS AUTHORIZATION." The SSA issues this card to people who have Department of Homeland Security permission to work temporarily in the U.S.  Cards issued prior to April 2004 bear the legend, "VALID FOR WORK ONLY WITH INS AUTHORIZATION."

How Do I Apply for a Social Security Number for Non-Working Reasons?

If you do not have a work permit OR are not legally allowed to work in the United States, this section applies.

The SSA requires that you submit a letter on letterhead stationery (photocopies are not accepted) from the government agency that requires you to get a number. The letter must identify you as the applicant, refer to the law requiring you to have a Social Security number, and specify the reasons that you meet all the agency's requirements. If you are assigned a number for non-work purposes, you cannot use it to work. If you use it to work, the Social Security Administration may inform the U.S. Citizenship and Immigration Services .

Even if you have not yet received authorization to work in the United States, you may still want to apply for a Social Security number.  Having an SSN may be needed for non-work related matters, such as:

• Public assistance
• Taxes
• Getting a driver’s license
• Registering your vehicle
• Medical care

Keeping My Social Security Record Safe

In the workplace, your employer uses your SSN to keep track of your earnings. To prevent mistakes or inaccuracies with your Social Security record, make sure that your name and Social Security number appear accurately on your W-2 work form.  This will prevent your earnings from being credited to some other worker.

Identity theft means that someone has stolen your personal information (such as your Social Security number or bank account information).  If someone gets this information, they may be able to withdraw money from your bank account or apply for credit cards using your name.  Identity theft is a serious crime and it is becoming increasingly common.  Protect your personal information by taking the following measures:

• Make sure you know and trust the people and businesses that you give personal information to.  Be especially careful when giving out your personal information over the phone and Internet
• Leave your SSN at home in a safe place.  Carrying your Social Security card can make you more vulnerable to identity theft. 
• Leave your important personal and banking information at home in a safe place 
• Tear up or shred any paper or documents containing your personal information before throwing them away

Request a 'Personal Earnings and Benefit Estimate Statement" at least once every three years.  For no charge, you can order your statement by calling the Social Security Administration at (800) 772-1213, or contact a Social Security service provider.

If you think you may be a victim of identity theft, call the Federal Trade Commission ID Theft Hotline at (877) 438-4338 or log on to their website.

If Someone Else is Using Your SSN

While it is unlawful to use someone else’s SSN, it is important to stay aware in the event that someone gets a hold of your Social Security information.

If you suspect that your SSN has been used by someone else to build credit or spend money or for other fraudulent purposes, contact the Federal Trade Commission by calling 202-FTC-HELP (382-4357.  You can also reach the FTC by mail at the following address:

Consumer Response Center
Federal Trade Commission
600 Pennsylvania Ave, NW
Washington, DC 20580

Benefits Available for Those Without Social Security

If you are a legally admitted immigrant, there are still many services and benefits you receive without a Social Security number.  While many institutions will ask you for your SSN, you are not required to have an SSN to do the following:

• Get group health insurance coverage. If you are covered by a group health insurance plan, your employer is not required to disclose your Social Security number.
• Carry out business with a financial institution. If you do not have an SSN, you can still conduct business with a financial institution, but you must have an ITIN for tax purposes.
• Enroll in a school or register for tests.  You can enroll in schools and sign up for educational tests, such as the SAT or GMAT tests, without having an SSN.
• Sign up for school lunch programs. If you are a parent seeking to be eligible for free or reduced school lunch programs for your children, you can use your own Social Security number; if you do not have an SSN you are still able to enroll in school lunch programs.  Call the Social Security Administration service number at (800) 772-1213 and a representative will help you.  The representative can send a letter stating that an SSN is not necessary.
• Apply for HUD housing.  Any family member age 6 or older without a Social Security number can ask the Social Security Administration for a letter stating that an SSN is not necessary.
• Buy savings bonds. As long as you are a legal alien, you can purchase savings bonds, even without an SSN, as a “co-owner” or “beneficiary.”

Your Responsibilities

You must take charge of your own Social Security record!  To keep your record current and accurate, it is important to notify the Social Security Administration in the following situations:

Marriage or divorce.  If you get married or divorced, it may influence your Social Security benefits.

Change of address.  If you plan to move, notify the SSA of your new address and phone number.  The SSA needs this new information to send you important statements and notifications regarding your Social Security record.  In the event that the SSA cannot reach you, it might stop accumulating your benefits. You can call the toll-free number at (800) 772-1213.

Change in citizenship status.  If you are a non-citizen, notify the SSA if you become a U.S. citizen or your non-citizen status changes in any way. If your non-citizen status expires, let the SSA know if you are in the process of extending or renewing your immigration status.

Adoption of a child.  If you adopt a child, let the SSA know the child’s name, the date of the adoption decree and adopting parents’ names and address.

Leaving the United States.  U.S citizens may travel or live outside of America while still continuing to receive benefits.  Some foreign countries are exceptions to this rule; the SSA will not send payments to a select few countries.  As this list changes frequently, call the SSA to find out which countries currently apply.

if you are not a U.S. citizen and you leave the country, you must provide the SSA with evidence of your lawful alien status when you return to the U.S. in order to continue receiving benefits.

Criminal Offenses.  If a beneficiary of Social Security is convicted of a crime in the United States, notify the SSA.  When someone is in prison, the SSA typically does not pay benefits; family members, though, are still eligible to receive benefits.

Change of name.  If you change your name for any reason, notify the SSA of the change so it can show the new name in your Social Security records.

Change in estimated earnings.  If your earnings will end up being higher or lower than you estimated at the beginning of each year, let the SSA know promptly so it can adjust your benefits accordingly.

Change in child care guardian.  If you care for a child who is disabled or under the age of 16, notify the SSA in the event that you are no longer the child’s caretaker. Let the SSA know the name, address and phone number of new caretaker.  If you continue to serve general parental duties, a temporary separation does not typically affect your benefits. Bif you no longer hold responsibility over the child, the SSA may stop your benefits for the child.

Change in child care guardian.  If you care for a child who is disabled or under the age of 16, notify the SSA in the event that you are no longer the child’s caretaker. Let the SSA know the name, address and phone number of new caretaker.  If you continue to serve general parental duties, a temporary separation does not typically affect your benefits. Bif you no longer hold responsibility over the child, the SSA may stop your benefits for the child.

What is Supplemental Security Income (SSI)?

If you have few financial assets, you may qualify for a program called Supplemental Security Income (SSI),.

SSI  provides monthly payments to Americans with limited income.  Moreover, if you are disabled, blind, or 65 or older, you may be eligible to receive SSI payments.  SSI can provide food stamps, Medicaid and other social services, and is operated by the Social Security Administration. To find out if you qualify for SSI, call the SSA or visit your nearest office.

How to Avoid "Dual Social Security Taxation"

If you work for an international company in the United States, you may be required to pay Social Security taxes twice—once to the United States and again to your home country. This is often referred to as dual taxation.  If you are in this situation, depending on the national origin of your company, there are ways to avoid paying twice. Currently, the United States has signed agreements with 17 countries to eliminate dual taxation in Social Security.

For more information on your country’s agreement, you can write to: