A Social Security number is a must for every citizen of the USA. In the United States, this holds true, for not only does a Social Security number (SSN) give proof that you are eligible for a great deal of benefits, your SSN is also considered as a national identification as well. The SSN is honored at majority of important establishments, such as banks and government agencies.

In order to have Social Security eligibility, you must pay taxes from your work pay. These contributions fund the Social Security system, and it provides coverage for disability, old age and unemployment. Workers will have deductions from their total pay, which serves as their mandatory contribution to the fund.

One can't just pay taxes or have their wages increased automatically before knowing the eligibility of their wage rate. It is the employers' responsibility to inform their employees if Social Security tax and Medicare tax is applied to their salaries.

Just like standard tax rules in other nations, civil status is one of the factors that determines how much tax a person pays. Naturally, people who are single have to shell out more for taxes, or have their Social Security benefits taxed more, compared to those who are married and have their own families.

There are times that taxes can be withheld from an employee incorrectly. In a case like this, a worker can always inform his employer about the error. Employers should be able to refund the full amount of the money in question. If you cannot claim a full refund from your employer, you can always file it with the Internal Revenue Service and submit the required forms to have your refund processed.

Self-employed persons can also pay for Social Security tax. They pay self-employment tax, which takes care of Social Security and Medicare for those who are not independently employed. Legal aliens who are residents of the United States will also have to pay for self-employment tax, except for those who are working for foreign governments or organizations. The money that they earned in and out of the country will not be subject to taxes.

Here are some taxation rules employed by the Social Security Office:

* Members can earn work credits, and this is credited towards a person's Social Security benefits. A member can earn up to four credits annually. For those working for retirement benefits, most people need forty credits before earning it.
* Those who are working while still getting disability benefits must inform the Social Security Office about the earnings, no matter how meager it may be. This will determine one's rightful eligibility to disability and other benefits
* Majority of costs in Medicare increases after a year to equal the rise in healthcare costs. The amount of premium one has to pay to acquire Medicare will depend on the amount of Social Security credits he has earned.
* The law states that those who have not reached retirement age and are already getting benefits from Social Security can still receive their full benefits. This will depend on their age and the type of benefit applied for.

Some retired Americans feel it is unfair that, since the days of Ronald Reagan, they have not only paid into Social Security, but now have to pay Social Security tax on top of that now that they are of age to receive benefits. This type of Social Security tax is a particular hot button to this portion of the population. With more Baby Boomers moving into retirement it is assured that the Social Security tax will not go away anytime soon.