Tax Strategies & Credits

Change Your Name This Year? It Can Affect Your Taxes

Change Your Name This Year? It Can Affect Your Taxes

There are a number of very good reasons why a person changes their name, but no matter the reason, doing so involves a good deal of paperwork and filing of required documentation. With so many steps involved in the process, it is easy to lose sight of the fact that you need to notify the Internal Revenue Service of the change. Doing so makes sure that the name that’s filled out on your tax return matches up with the Social Security records that the IRS references, thus ensuring that you get any refund you’re owed in a timely manner and avoiding the possibility of confusion.

Here are some of the most common name change scenarios, and what you need to do if they apply to you:

  • Dependent Name Change: If a dependent child has had a legal name change, such as is the case if you have adopted a child and they have taken your surname, it is necessary for you to notify the Social Security Administration. If the child does not already have their own Social Security number, visit IRS.gov and download Form W-7A, the Application for Taxpayer Identification Number for Pending U.S. Adoptions. This form needs to be filed in order to apply for an Adoption Taxpayer Identification Number for reference on your tax return. This is a temporary number for use until a formal Social Security number has been assigned.
  • Self Name Change: Name changes are often part of the process when a person gets married or divorced, as well as in other circumstances. No matter the reason, once you have legally changed your name you need to make the Social Security Administration aware of the change so that the new surname that you use on your tax forms matches the Social Security Administration’s records. As part of this process you can apply for a new Social Security card using Form SS-5, the Application for a Social Security Card. This form is available on the Social Security website (SSA.gov), or you can have a copy of the form sent to you by calling 800-772-1213. When you change your name, you retain your old Social Security number but are issued a new card that reflects your new name.
  • Health Insurance: At the same time that you make these changes, you should report any changes in circumstances that might have an impact on health insurance coverage purchased through the Health Insurance Marketplace. It is essential that you keep information about marital status, changes to your name, changes in income or family size, or a new address to the insurance company, particularly if the change impacts the premium tax credit that you receive. By being proactive in keeping the information on file about you current, you can avoid having to repay monies that you have been advanced as part of the premium tax credit.
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Tera Kovanes

Tera Kovanes

Tera D. Kovanes, CPA is a Certified Public Accountant (CPA) practice based in Henrico, Virginia. She can assist you with your tax preparation, planning, accounting, payroll and bookkeeping needs. She specializes in outsourced or part-time CFO work. In addition to being a CPA, she also is a Certified Fraud Examiner.

Tera D. Kovanes, CPA
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Virginia

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