If you are planning to travel to the United States to study or work, it is important that you ask yourself
how Social Security works in the United States.
Asking yourself questions about the American lifestyle will help you have a smooth experience.
To make things easier for you, we wrote this article telling you how to access Social Security in the United States. We also explain how it works and what its benefits are.
Run and get your paper and pencil, because there’s a lot to learn!
What is the Social Security system in the United States?
Social Security (SS) is a program of the United States Federal Government that provides assistance to workers during their retirement and in case of disability.
It also applies to some family members of retired, disabled or deceased workers. And why is it important? Because obtaining a Social Security number will allow you to:
- Work legally in the United States.
- Make contributions such as paying taxes.
- Obtaining benefits when you retire.
- It is the means by which each person’s credit score is recorded.
In addition, foreign workers with valid U.S. work permits will be able to:
- Earn points or credits that count toward Social Security benefits.
- Receive their benefits if they meet the necessary amount of credits.
Foreign workers whose presence in the United States is not legal are not eligible for Social Security benefits.
How does Social Security work in the United States?
To understand how Social Security works in the United States, you need to understand its benefits program, which is based on the contributions that workers make to the system.
While you are employed, your employer must allocate a percentage of your salary to Social Security, thanks to which you will receive the benefits stated above.
These contributions are known as federal insurance contribution (FICA) taxes. They are deducted from most paychecks and sent to the Internal Revenue Service (IRS, the government agency that collects taxes).
Your employer is required by law to report your earnings to the Social Security Administration ( SSA). So the SSA uses your Social Security number to track your earnings or credit numbers.
As you pay into the system, you earn “credits” that qualify you for Social Security benefits.
How do Social Security credits accumulate and how many are needed to qualify for benefits?
In 2022, the amount of earnings required for a credit is $1,510. You can accumulate a maximum of four credits per year.
The amount you need to earn a credit increases automatically each year as average earnings levels increase.
Generally, you need to accumulate a certain number of credits to qualify for SS benefits. The number of credits you need depends on your age and the type of benefit you are applying for.
That’s right! No one will need more than 40 credits to receive any Social Security benefit.
What is the Social Security number for?
If you are in the United States under a temporary work visa, you will need a Social Security number to work and pay taxes.
The reason for this is that the SSA uses the number to track the money you earn and your benefits once you start receiving them.
If your employer has never asked for your Social Security number , they are NOT paying your benefits.
Social Security Benefits in the United States
Social Security benefits in the United States are many and there are several cases in which workers can receive and use their benefits. These cases are:
Retirement
Workers can retire as early as age 62 and receive a partial Social Security pension. Or they can wait until the normal retirement age and receive their full pension payment.
The normal retirement age before 2003 was 65. However, since 2003 it has gradually increased to 67 for people born after 1960.
Relatives of deceased workers
When a worker dies, some members of his or her family may be entitled to receive benefits from their deceased relative if he or she has sufficient credits.
These members can be:
- Your spouse, if over 60 years old.
- Unmarried children under 18 years of age (or under 19 if they are full-time students in primary or secondary education, or 18 years of age or older if they have a disability).
- The worker’s parents, if they depend on him as their main source of support.
If the spouse is over 50 years old and has a disability, or is caring for a minor under 16 years old or a disabled person entitled to the SS benefit for minors, he or she also has access to this benefit.
Benefits for family members
Dependent family members of retired workers who receive SS payments may also be eligible to receive the benefit. These family members may include:
- A spouse, if he or she is 62 or older, or if he or she is under 62 and is caring for someone under 16 or disabled who is entitled to Social Security benefits for minors.
- Unmarried children under 18 years of age (or under 19 if they are full-time students in primary or secondary education or 18 years of age or older if they have a disability).
- If you are divorced and your ex-spouse has not remarried, you may be entitled to benefits.
Medicare
Medicare is a health insurance for people aged 65 or older, although it is also aimed at:
- Some people under 65 have disabilities.
- Men and women of all ages who suffer from end-stage renal disease.
Original Medicare is a fee-for-service health plan that is divided into two parts:
Part A (Hospital Insurance)
This part helps cover hospitalization, skilled nursing facilities, hospice, and home health care.
Part B (Medical Insurance)
This part covers medical services and other providers such as:
- Outpatient care.
- Home health care.
- Durable medical equipment (such as wheelchairs, walkers, hospital beds, and other equipment).
- Many preventive services (such as screenings, immunizations, and annual wellness visits).
How does Social Security work in the United States for foreigners?
Now that you have learned the general aspects of how Social Security works in the United States, we now want to talk to you about what happens with Social Security for foreigners.
You must be very clear that anyone who wants to work in the United States needs a Social Security number to work, receive benefits, and participate in government programs.
Yes! Legal immigrants can receive many benefits even without having a Social Security number. For example, a number is not needed for:
- Get a driver’s license.
- Enroll in a school.
- Purchase health insurance.
- Participate in school lunch programs or housing subsidies.
- Have a cell phone or a credit card.
How to apply for a Social Security number in the United States as a foreigner?
Typically, only those foreigners who have permission from the Department of Homeland Security (DHS) to work in the United States can apply for it.
Remember that some types of visas that allow you to work are:
- E-1, E-2: treaty trader or investor.
- F-1: Foreign academic student, when certain conditions are met.
- H-1B, H-1C, H-2A, H-2B, H-3: temporary worker.
- J-1: Exchange visitor, when certain conditions are met.
- M-1: Foreign vocational student.
There are other types of visas to work in the United States. If you want to know the complete list, we recommend you visit this page.
Step by step to apply for a Social Security number as a foreigner
To apply for a Social Security number you must:
- Communicate with Social Security from anywhere in the world and at any time. There you can also open your account, check your earnings, and print a benefits verification letter, among others.
- Complete an application for a Social Security card (form SS-5-SP).
- If you have an F-1 or M-1 student visa and have a work permit, you must present it.
- If you are an international visitor on a J-1 visa, you must submit a letter from your employer. The letter must be written on the employer’s letterhead and have an original signature authorizing your employment.
- Submit a birth certificate of the foreigner.
- Have a valid ID that shows your name, and your information and has a current photograph.
All documents must be originals or certified copies by the agency that issued them. Additionally, requesting a Social Security number and card is a completely FREE service.
When is it appropriate to apply for a Social Security number?
We recommend that you wait at least ten days after your arrival in the United States to apply so that your DHS-issued documents can be verified.
Also, once they have all the required information and the documents are verified with the agencies that issued them, they will send you your Social Security card by email.
How do I know I’m getting credit for the years I worked?
The SSA mails a summary of your benefits each year, approximately three months before your birthday. You can also request one from the SSA by downloading a form SSA-7004 through their website.
Your statement provides a record of your earnings history, the number of credits you have accumulated to date, and an estimate of the retirement benefits available if you wait until full retirement age.
Because your benefits depend on your lifetime earnings, check the statement carefully to make sure all the information is accurate.
Achieve your goal of studying and working in the United States!
We hope that this article has been useful to you in understanding how Social Security works in the United States and how to access it as a foreigner.
