Tax Benefits of a Social Security Number

• Social Security numbers are required to collect many tax benefits available to individual taxpayers. For instance, a valid Social Security number was a requirement to collect the stimulus tax benefit payments distributed in 2008 and 2009. Additionally, taxpayers must have a Social Security number to claim the Earned Income Credit, a tax credit available to low-income workers.
  
  

Other Benefits of a Social Security Number

• Social Security numbers are also required for seniors and other eligible recipients to collect Social Security payments. Medicare benefits also require holders to have a valid Social Security number. For disabled individuals, a Social Security number is required to collect SSI and SSID, the two forms of Social Security disability payments. For very low income individuals, a Social Security number is necessary to qualify for Medicaid, which is medical care provided to the very poor who are uninsured.
  
  

Credit Benefits of an Employer Identification Number

• For individuals and small business owners, an Employer Identification Number (EIN), is the first step in establishing a credit profile separate from their personal credit histories. An EIN can be used to open credit accounts with suppliers as well as apply for business credit cards. An EIN is also nearly always required to open a business bank account. If a business has employees other than the owner, it is required to have an EIN on file with the IRS.
  
  

Other Benefits of an Employer Identification Number

• An EIN can be used by contractors who wish to shield their personal Social Security numbers. An EIN is also required to obtain a unique D-U-N-S (Data Universal Numbering System) number from Dun and Bradstreet. The D-U-N-S number is a unique identifier that is acknowledged worldwide to distinguish individual business entities from one another. A D-U-N-S number is required to register with the Central Contractor Registration database, which is the means by which companies obtain contracts with the federal government.
  
  

Benefits of a Preparer Tax Identification Number

• Paid tax preparers are required to sign the forms they prepare, as well as provide either their Social Security numbers or a Preparer Tax Identification Number (PTIN). A Preparer Tax Identification Number can be used by individuals who are paid to prepare tax returns in place of their personal Social Security numbers. This is nearly identical to how an EIN can be used by an individual contractor.