I was under the impression that changing my name legally for SSA would automatically apply to the IRS. I've read online that may be incorrect, but nothing states how one would correct this.
You don’t have to correct your W-2 name. That’s the name on the form that the IRS received. Yes, the IRS will recognize your new name if changed with social security. Going forward ask your employer to change to your new name.
You don't need to worry about the name on your W-2, as long as the Social Security number is correct. You should use the name on record with the Social Security Administration on your tax return. There is a possibility that your return will be rejected because your name doesn't match IRS records (they use SSA information). If that occurs, the change your return to your previous name. It will be due to a delay in update the records, and is not anything to worry about.
Hello! Is it alright that other supporting forms like 1099, etc. are also in my old name?
Yes, file all of your income regardless of the name printed on them. The Social Security Administration (SSA) and the IRS exchange information on a regular basis (likely every day). The change will take place in both systems fairly quickly. You should file your income as you normally would and keep all of your documents with your tax return should you need them if asked.
If your return should reject for the reason of name and social security mismatch, double check the SSA has initiated the change. Once confirmed send the return again without making changes. At worst, you would have to mail your return, however that shouldn't be the case.
Thank you for your response! So I can go ahead and file my tax return under my new legal name (that I've updated with SSA) and the IRS should be aware of this without any extra action on my part?
Thank you so much 🙂
Yes, that is correct. As indicated, if for some reason it does get rejected more than once, you may want to mail it.