Money Matters
We all have heard stories about identity theft, and especially how elderly individuals are so heavily targeted. There is a growing trend of identity theft, but the target is children and their Social Security numbers. When your child’s Social Security number has been compromised due to identity theft, this can cause significant difficulty when the parent’s file their tax returns and claim the many child-related tax benefits, such as the Child Tax Credit, the Child Care Credit, and even the Earned Income Tax Credit. If a fraudulent tax return has been filed using the stolen identity information of your child, it is not possible to electronically file the parent’s tax return without obtaining an Identity Protection PIN from the IRS website irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.
A much longer-term impact to your child is if their Social Security number is compromised at an early age, this can cause significant difficulty in the future, such as when they apply for their first credit card, or a car loan, or even on an application for an apartment. The Federal Trade Commission has an excellent website with helpful tips for checking for Child Identity Theft, ways to protect your child’s information, and additional guidance on what to do if you believe there has been identity theft of your child’s information: consumer.ftc.gov/articles/how-protect-your-child-identity-theft.
It is never too early to be conscious of this risk. Any person that has a Social Security number is at risk, regardless of their age.
-Benefield & Hamner, Certified Public Accountants
205-621-4033, www.cpabh.com
