When life's milestones like marriage or divorce occur, it's crucial to ensure that your personal records, especially with the Social Security Administration (SSA), are up to date. A discrepancy between the name on your tax return and the one associated with your Social Security number (SSN) can lead to unexpected tax complications, potentially increasing your tax liability or diminishing your refund.
When a person gets married and chooses to change their surname, it's essential to notify the SSA of this change. If a couple files a joint tax return and the bride has adopted her husband's surname without updating her details with the SSA, the mismatch can trigger red flags within the IRS systems. This could lead to increased scrutiny, tax assessments, or even an audit, as the IRS might suspect tax evasion.
According to the National Center for Health Statistics, there were over 2.2 million marriages in the United States in 2019. With a significant number of those likely involving a name change, the potential for mismatches is considerable. However, the exact number of mismatches due to name changes is not commonly discussed in public data.
Similarly, after a divorce, individuals who have previously changed their name with the SSA must ensure that their records reflect their current legal name. If someone reverts to their maiden name or a previous surname without updating the SSA, this could also lead to audits and tax issues. The emotional toll of an audit can be exacerbated if it involves interaction with a former spouse.
The American Psychological Association notes that about 40 to 50 percent of married couples in the United States divorce. With such a high rate, the number of people needing to update their information with the SSA is significant, yet the awareness of this requirement is not as widespread as it should be.
Updating your name with the SSA is a straightforward process. You need to file Form SS-5 at a local SSA office, which can be done in person or by mail. The form is accessible on the SSA's official website (www.ssa.gov), or by calling their toll-free number at 1-800-772-1213. The website also provides addresses for local offices. It typically takes about two weeks for the change to be processed and verified.
Here's a quick checklist for updating your name with the SSA:
Remember, keeping your name consistent across all legal documents, especially with the SSA, is crucial for a smooth tax filing process and to avoid unnecessary stress with the IRS.
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