How A Name Change Affects A Tax Return

There are various reasons why people change their names.

The more common are:

Taking their spouse’s last name after a marriage
Hyphenating their last name with their spouse’s after getting married
Going back to their former name after a divorce
Giving an adopted child the last name of their new family

Other reasons people change their names might include:

Marketing purposes
To dissociate themselves from an undesirable family or political name
To dissociate themselves from a former religion or ethnicity
To simplify spelling or pronunciation
To adopt a name one feels better suits their identity

The laws regulating name changes vary by state and may require fees. Almost all states prohibit name changes that are intentionally misleading or may incite violence, such as a name using a racial slur or an obscenity.

50,000 Name Changes Per Year?

It was shocking to learn that in this day of analytics and statistical data there is no tracking on how many people change their names each year, according to author Bruce Lansky (“100,000+ Baby Names”). Although, he told the Chicago Tribune he estimates the number to be around 50,000 per year.

What Does All This Have To Do With Taxes?

When someone legally changes their name, there are tax consequences they need to know about, especially at tax time. People experiencing a name change should remember these important things:

Report Change To SSA

Notify the Social Security Administration of a name change ASAP. When you file your taxes, the IRS checks SSA records to ensure names and social security numbers on the forms match.

Failure To Report A Name Change

If a name on your tax return does not match SSA records, it can delay the IRS processing of that return. In that case, if you are due a refund, it will take longer for you to get your money.

Name Change Due To Adoption

In the case of an adoption, if the child has a Social Security number, be sure to inform the SSA of a name change. If the child does not have a Social Security number, you may use a temporary Adoption Taxpayer Identification Number on your tax return. For pending U.S. adoptions, taxpayers can apply for an ATIN by filing Form W-7A with the IRS.

Getting A New SS Card

After a name change, you should file Form SS-5 to apply for a new Social Security card. The form is available on SSA.gov or by calling 800-772-1213. Your new Social Security card will reflect your name change.