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If I have a child and elect not to get him a social security number, will he still be required to pay social security taxes? I am a U.S. citizen, as is he.

I'm trying to weigh the cost of not claiming him as a dependent on my tax return against this potential upside—but I want to be sure the upside is real first.

Edit:

First, this is not a duplicate of How do I opt-out of the Social Security system?. That question is about opting oneself out of SS; this one is about opting a dependent out.

Second, if you find yourself more occupied about my motivations than my question, please read the following disclaimers:

  • I understand that this will be inconvenient for him (and us).
  • I am not trying to evade taxes or do anything illegal.
  • Even if I were a nutjob tax evader, speculation and comment about such only serves to divert attention from the question at hand.

Third, a correction. A SSN is not required to get a job. Not even a non-religious/non-exempt job (See David's answer below.)

Lastly, a request. Please justify your answer. I'd like to see it in the applicable tax code, or at least on a reputable source like irs.gov. Thanks!

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Jeff Terrell Ph.D.
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    When he grows up, how will he get a job? Or do you plan to leave him a large trust fund? – jamesqf Jan 28 '16 at 05:29
  • If the trust fund option, then there really isn't a concern about tax on earnings. – JohnFx Jan 28 '16 at 05:30
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    I'm confused, what would the upside be? – Tobia Tesan Jan 28 '16 at 11:33
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    What upside? This'll mainly just mean your child has massive inconveniences in the future, when they apply for health insurance, college financial aid, and jobs. – ceejayoz Jan 28 '16 at 14:17
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    opt-out!? how do you think your SS checks will be funded? get that boy to work!!! – n00b Jan 28 '16 at 15:00
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    Or get a driver's license, or a hunting/fishing license, or medical insurance, or ... – shoover Jan 28 '16 at 17:13
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    @TobiaTesan: Apparently OP has been reading a lot of tax-evasion nutjobs' websites/books/manifestos/whatnot claiming there's some way to avoid paying taxes if you don't have a SSN... – R.. GitHub STOP HELPING ICE Jan 28 '16 at 18:14
  • @TobiaTesan, the potential upside that I'm wondering about is him not paying 6.2% of his income—or potentially more in the future. That's a lot of money! – Jeff Terrell Ph.D. Jan 28 '16 at 20:29
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    And note that if he never pays into the system there will be no medicare when he retires. He had better be prepared to pay out of pocket for his medical needs! – Loren Pechtel Jan 28 '16 at 21:19
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    @Jeff In your edit, you refer to David's answer below, but be aware that the answer's citation and book suggestion is to precisely the kind of unreliable and inaccurate tax-protester/conspiracy theorist literature that others are counseling you against. – Michael A Jan 28 '16 at 22:22
  • 6% income tax is "a lot of money"? A trip to Northern Europe might lead to seeing things in a different light :) – Tobia Tesan Jan 28 '16 at 22:29
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    @Jeff Also, you need a Social Security number to get a job. The Social Security Administration is quite clear on that. Even if you're in a job where you might be exempt from Social Security taxes (like being a minister), not only is it difficult to opt out, but you'll still need the number. Unless you're foreign-born and can have an ITIN or some other subsitute, you'll need it. – Michael A Jan 28 '16 at 22:45
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    You cannot exempt your dependent. At all. Social Security doesn't cover minors, so there's nothing for you to exempt him from. – littleadv Jan 29 '16 at 05:51
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    There's no connection whatsoever between having a social security number and being required to pay the taxes that fund social security. You can have a social security number and still meet the requirements to opt out of social security. Even if you don't have a social security number, the obligation to pay the taxes that fund it are still imposed on you. There's just literally zero connection between these two things. It's a myth. No reputable citation for it is possible. – David Schwartz Mar 08 '17 at 19:14

3 Answers3

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The good news is that he probably won't be required to pay SS taxes. The bad news is that the reason will be because he can't get a job without a SSN. You don't get to just opt out of the social security system wholesale like that.

However, there are some career options to avoid paying into (or getting paid out of) social security including jobs with religious institutions.

Edit: Another consideration I didn't think of previously. Even if you did manage to opt out, and assuming you somehow found a way to be employed. Consider that your EMPLOYER matches your Social Security tax payments, so you would effectively be opting out of a benefit that you only had to kick in 50% of the cost for.

JohnFx
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    Since 1984, US government civilians are under the social security program and pay into it with every pay check. – mikeazo Jan 28 '16 at 15:59
  • Federal jobs have a three-part retirement plan: FERS (pension), Social Security, and TSP (Thrift Savings Plan, similar to a 401(k)). –  Jan 28 '16 at 17:18
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    True, but some state and local government employees are not covered by Social Security. They generally have their own retirement arrangements as provided by the state government. – Zach Lipton Jan 28 '16 at 17:56
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    JohnFx, US government employees - including senators and congresspeople - now (since about 1985) do pay into SS, and are entitled to its benefits on retirement. There is a separate pension plan that they also pay into. –  Jan 28 '16 at 15:32
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Not getting SSN has nothing to do with his/her liability to pay SS taxes. It just makes the life more complicated and you forgo your own tax benefits that you must have child's SSN to get.

To request an exemption, your child must qualify under certain conditions and file a formal request for exemption with the SSA. See here for more details.

littleadv
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Social Security is just another type of income tax (Section 301 of the IRC, "Old Age Survivors Insurance Benefit Program"). It is true that your child may not be able to obtain a drivers license in most states or obtains some other licenses but they can get a job as the courts have ruled a SSN is not required. If you want to opt out of the program (officially) then you still must first obtain a SSN and meet the criteria (being a member of a religious organization that has existed prior to 1951, etc).

JohnFx
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David T. Swann
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    Any better sources than a two-bit tax protester and conspiracy theorist? That reference looks suspiciously like spam to me. The website for the book advertises that "This is the book the IRS fears will cause a national tax revolt!", and hyperbole like that instinctively makes me question the content. – Michael A Jan 28 '16 at 22:17
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    Do you have any citations for this " they can get a job as the courts have ruled a SSN is not required" that aren't in a book of dubious origin? – Michael A Jan 28 '16 at 22:23
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    IRC Sec 301 has nothing to do with social security whatsoever. – littleadv Jan 29 '16 at 05:46
  • There is a court decision that an employer can't demand an SSN on a job application. Once hired, that's another story. Required. – Andrew Lazarus Feb 09 '18 at 01:45