Alan Prahl of the Financial Information and Service Center recently wrote a column diving into a common question: under what circumstances should people give out their Social Security numbers? And when should they be wary about disclosing it?
Prahl lists some common instances where you will have to give out your Social Security number:
Social Security Numbers are often required with employment. Employers report earnings and tax data to the IRS and Social Security Administration using our SSN. If you want to retire and get Social Security checks, make sure you give the correct SSN and are being correctly credited for payments to Social Security.
Financial institutions need SSNs because they report data to IRS like interest and dividends. We use our SSN when we file state and federal tax returns. If you are dealing with taxing authorities or applying for government benefits, expect that you will need to provide your SSN.
Social Security Numbers are also required when we apply for hunting and fishing licenses. First-time applicants for recreational licenses may wonder why in the world this is required.
A 1996 federal law requires many state agencies to collect SSNs to improve child support compliance. The law requires SSNs to be recorded for “any applicant for a professional license, driver’s license, occupational license or marriage license.” If a parent is three or more months past due on child support, some licenses can be suspended or denied. Men, don’t ask if your marriage license can be suspended! Thankfully, the law does not require SSNs to be printed on recreational licenses.
Other circumstances warrant more skepticism. Prahl writes:
Requests for SSNs from other types of businesses or organizations should be scrutinized on a case-by-case basis. Some organizations that request your SSN may not really need your number, while others have a legitimate reason for their request.
For example, if you want to rent an apartment, the landlord will probably want your SSN to run a credit check. If you apply for a loan, you’ll need to provide your SSN.
If you are skeptical about a request for your SSN, consider saying something like, “I don’t like to give out my Social Security Number unless it is really necessary. Why is it needed? What law requires that I give you my Social Security Number? How would it be used if I gave it to you?”
Ask if you can provide a different number instead. Keep in mind that a business could say they won’t work with you if you don’t provide your SSN. You may have to decide which is more important: being a customer of that business or keeping your SSN to yourself.
Visit the Financial Information and Service Center by clicking here.
Photo by frankieleon via Flickr CC License
