There are a variety of reasons why you may have changed your name in the past year. Whether you celebrated a marriage, finalized a divorce, or decided to change your name for any other reason, there are a few steps you’ll need to follow in order to avoid complications with your upcoming tax return prep and filing.
Next Steps for Your Tax Return
Before you officially file your tax return, you’ll want to fill out a form SS-5. This is how you’ll communicate the name change with the IRS. Submit this completed form as soon as possible, and you’ll make things a lot easier going forward.
Usually, whoever is helping you prepare your tax return will be able to walk you through this process. And if nothing else, they should at least confirm that you already returned the SS-5 form before getting to work on your tax planning. If you haven’t, then get on it as soon as possible. In addition, you’ll need to touch base with your employers to ensure that your W-2 has the correct change as well. Once that’s set, you should then check in with the Social Security Administration to confirm that your new name is now being displayed on your social security number.
What Happens if the Names Don’t Match?
A few different things can happen if your legal name hasn’t been updated with your other documents. For example, it’s common for tax returns to get rejected during an e-file if the name on the tax return and the name on record with the Social Security Administration don’t match. What’s more, you might be facing serious disruptions with the deductions you would want to claim.
This could also cause the IRS to send you a notice to review your taxes owed and even apply penalties for “underpayments.” Things can get complicated fast! But if you have the right professionals on your side, navigating these issues can be much less of a hassle.
Other Tips to Stay on Track
Along the way, please be sure to keep in mind that your tax return is just one piece of the puzzle—albeit an important one. When you’ve changed your name, you’ll need to update your accounts across the board. Don’t forget about your other important records.
Have you notified your bank? Is your new name reflected on your driver’s license? How about your car title and property titles? All of these legal and professional documents need to be current so you can avoid miscommunication or other troubles down the line.
While you’re at it, also remember that major life changes often merit a comprehensive tax review. If your living arrangements have changed over the past 12 months, there’s a good chance that the way in which you file your tax return and manage your tax responsibility will need some updates too. If you have questions about that process or just need a second opinion, please feel free to reach out to our team at NSO and Company. You can always call us at (317) 588-3131. Let’s talk!