Confirmed by the SSA: Thousands of Americans know it's vital, be careful if you change this

Thousands of Americans have received a clear notice from Social Security (SSA): there's a major change they can't ignore. SSA, together with the IRS, has emphasized the importance of providing correct tax details to avoid penalties, problems with tax withholding, or errors in your dependent declaration.

Important: SSA Gets Strict, This Is What You Must Know If You're Getting Divorced

First, if you change your name during the divorce process, SSA requires you to report it. The reason is simple: the IRS needs your name and Social Security number to match, or your returns will be rejected and your refund may be delayed. To do this, you must use the SS‑5 form, which can be submitted at your local SSA office or by mail.

Another essential point is the marital status you must reflect on your return. If you're legally divorced on the last day of the tax year, the IRS considers you single, unless you can file as Head of Household. This distinction directly affects your standard deduction, tax rates, and the tax credits you may access.

Procedures With No Room for Error

Update your name with SSA: Essential with the SS‑5 form, supported by legal documents such as the divorce decree or marriage certificate.

Review tax withholding: After divorce, your situation changes. Therefore, you must complete a new W‑4 form with your employer to adjust withholdings. If you receive or pay alimony, it may also be necessary to make quarterly payments or adjust additional withholdings.

Correctly declare dependents: If you have children, you must decide who claims them. This can alter your dependent declaration and determine if you can file as Head of Household irs.gov. In 50/50 agreements, IRS tiebreaker rules apply.

Economic Impact of Divorce

Divorce can mean a significant reduction in your finances. In addition to splitting assets, you could lose entitlement to certain tax benefits or pensions. In the case of alimony:

If your agreement was signed in 2018 or earlier, those payments are deductible for the payer and taxable for the recipient. If the agreement is after 2019, that tax treatment disappears, with no deduction or obligation to include it as income. Likewise, if you receive a portion of your ex-spouse's retirement through a QDRO order, that impacts your taxes when you withdraw the money.

Social Security insists on these steps because their mission is to protect your earnings record and future benefits. An error in your name, SSN, or marital status can lead to your earnings not being counted, reduce your retirement benefits, or even invalidate your applications for dependent or ex-spouse benefits.