Everybody Knows Your Name, but What About the IRS?

When it comes to your name, you may think that it's obvious who you are. After all, you've had your name forever, or have you? Most of us have given names, nicknames, married names, middle names, Jr., Sr., II, III and name changes are much more common than ever. When you think about a divorce rate of 50%, you can quickly see that name changes happen all the time.

The IRS is very picky about every detail of your name.  When you file your tax return, the IRS checks your name and Social Security Number against the Social Security database to verify they match. That's when the fun starts if they don't match!  At a minimum, your tax return will take longer to process.  If you filed electronically, your return will be rejected and you should know about the problem within 24 hours when your tax pro gives you a call.  If you mailed-in your return, you may not know about the problem for weeks.

Here are 3 tips to avoid problems with your name when you're filing your taxes:

1. Make sure you enter your full, legal name exactly as shown on your Social Security card.  If your last name is hyphenated, you must include both names and the hyphen. Be consistent and use your same name each year.

2. If you need to change your name or your kid's name due to divorce, adoption, etc., make sure you submit the change with as much lead time as possible before you need to file your next tax return.

3. If you're married, always be consistent in the order that you enter names on the 1040.  Don't get creative and take turns being the primary taxpayer. 

No one likes their tax return to be delayed so think about your name before you hit the 'send' button to submit your return. 

Now, go relax and watch an old Cheer's rerun, "where everybody knows your name", or you can just click here and sing along. 

DISCLOSURE: This article contains only general tax suggestions so you'll need to talk with your tax professional to decide the best approach which will apply to your specific situation. 

 ...................................................................................................................

John Rohrbeck is the President of Tax & Financial Strategies, LLC.  He has many years of experience as a Tax Specialist and is also a Certified Financial Planner (CFP®). 

You can reach John at: John@TaxAndFinancialPro.com, 248-514-5080 or get more information at: www.TaxAndFinancialPro.com.

You can also find him on LinkedIn, Twitter (@JohnRohrbeck), or frequently at Starbucks.