It can be surprising and concerning when a company like Ticketmaster asks for your tax information when purchasing tickets online. There are a few reasons Ticketmaster may request this information from customers.
Verifying Identity
One of the main reasons Ticketmaster asks for tax information like a Social Security number or tax ID is to verify your identity. When purchasing tickets for high-profile events, Ticketmaster uses your tax ID to confirm you are who you say you are. This helps cut down on scalpers or bots buying up tickets and reselling them at inflated prices.
They want to make sure real fans are getting access to tickets, not scalpers trying to make a quick buck. So don’t be alarmed if they ask for personal information like your tax ID, it’s just to confirm you are a genuine customer.
Collecting Tax Information
In some states, Ticketmaster is required by law to collect tax information on ticket sales. Certain states require vendors like Ticketmaster to gather tax IDs,Social Security numbers, or other information to properly charge sales tax on ticket purchases.
For example, if you buy tickets to a concert in New Jersey, since it has a 7% sales tax on entertainment events, Ticketmaster needs your tax info to charge the correct amount of sales tax and remit it to the state of New Jersey. This ensures Ticketmaster complies with local tax laws.
Reporting Requirements
Third-party ticket sellers like Ticketmaster may also be required to gather customer tax information to fulfill reporting requirements. Under federal law, payment processors like Ticketmaster must issue 1099-K forms to report gross payments over $600 per year to customers and the IRS.
To meet this reporting requirement, they need your tax information like Social Security number or tax ID. So if you are spending over $600 per year on Ticketmaster, don’t be surprised when they request your tax info.
Fraud Prevention
Collecting tax IDs also helps Ticketmaster prevent fraud. Having your detailed tax information on file makes it harder for someone to illegally access your account or make fraudulent purchases. It gives Ticketmaster another way to cross-check and authenticate your identity.
Your SSN or tax ID serves as an additional account security measure. So providing that sensitive information helps protect you and Ticketmaster from potential fraud or abuse of the system.
Should I Be Concerned About Providing This Information?
It’s understandable to have reservations about providing personal tax information online. However, Ticketmaster does take significant measures to protect your data and keep it secure.
According to their privacy policy, they use encryption, firewalls, and other security measures to safeguard your information. Your tax ID would only be used for identity verification and fraud prevention – not shared or sold.
Rest assured, Ticketmaster is a large, reputable company that relies on continuing to have access to ticket inventory from teams, artists, and venues. It is in their best interest to be good stewards of customer data.
That being said, it is always smart to think carefully before sharing sensitive information online. Make sure you are on Ticketmaster’s official website and using a secure internet connection whenever providing tax IDs or other personal information.
When You Will Be Asked for Tax Information
Wondering exactly when you’ll have to provide your SSN, tax ID, or other tax details? Here are some common situations:
- Purchasing tickets over a certain dollar amount, like $250+
- Buying tickets for a high-profile event like a playoff game or major concert
- Making over $600 in Ticketmaster purchases within a year
- Shipping tickets to an address different than your billing address
- Purchasing tickets for a state that requires sales tax collection (like NJ or CT)
Keep these scenarios in mind if Ticketmaster requests your tax info. Be prepared to provide the necessary details to complete your ticket purchase.
Alternatives if You Don’t Want to Provide Information
If you are not comfortable providing personal tax information to Ticketmaster, you do have some options:
- Purchase tickets in person at the venue box office – box offices generally don’t require tax info for purchases
- Buy from an authorized ticket reseller like StubHub that may not require tax IDs
- Find a friend or family member willing to purchase tickets using their account
- Avoid high-profile events that will trigger tax ID requirements
However, do keep in mind you may miss out on some convenient features like online delivery of tickets to your account. There are tradeoffs with avoiding services that ask for tax information.
The Bottom Line
It can be jarring when a website like Ticketmaster asks for your Social Security number or other tax identification information. However, they have legitimate reasons for collecting this sensitive data, including:
| Reason | Explanation |
|---|---|
| Identity verification | Confirm you are a real customer, not a scalper |
| Collecting sales tax | Adhere to state laws on charging sales tax |
| Reporting requirements | Issue 1099-Ks for payments over $600 |
| Fraud prevention | Cross-check identities and prevent fraud |
Ticketmaster also goes to great lengths to protect and secure your personal information. While caution is advised when providing tax IDs online, understand why Ticketmaster needs this information and how they use it responsibly.
If you are ever unsure about requests for tax details, reach out to Ticketmaster customer service for clarification. They can explain exactly why your SSN or other identification is needed for certain transactions.
At the end of the day, Ticketmaster’s verification requirements aim to get tickets into the hands of genuine fans, not scalpers or fraudsters. Though inconvenient at times, providing tax information helps Ticketmaster achieve that goal and creates a safer, more secure ticket buying experience overall.
