When you go to file your state return this tax season, you should know if your state is one of the growing number of states that require a driver’s license to e-file.
Most recently, New York State has become one of the states to require taxpayers to use information from a driver’s license or state-issued ID if they want to file their state tax return electronically. To file a personal New York State income tax return using electronic software, you’ll need to meet this requirement, as it applies to driver’s licenses and state-issued IDs from any state.
This allows state governments, such as New York and Louisiana, to suspend licenses if a taxpayer owes back taxes. In some cases, other states voluntarily request license information to remain compliant to IRS initiatives that fight identity and refund fraud.
This requirement only applies to income tax returns at the state level. Currently, taxpayers do not need state-issued identification to file their federal return.
Beginning in 2016, Ohio requires license information for the primary taxpayer and spouse, if filing a joint return, though there is an option to indicate that they do not possess a state-issued identification, such as a driver’s license. In these cases, they are still able to e-file their state return.
Along with Ohio, Alabama has a requirement of receiving information from taxpayer’s identification cards in order to file their return. Additionally, Alabama is seeking to fight identity and refund theft by having taxpayers complete a five-minute “ID Confirmation Quiz”.
Some states ask for identification information, but do not require a taxpayer to provide the information in order to file. Kansas, California, and Wisconsin all ask for driver’s license information voluntarily.
Taxpayers in Illinois who wish to use web-based applications or state-approved tax software will need to supply a driver’s license as a form of ID.
There are even states like Virginia, who request that vendors of filing-software use information from driver’s licenses to verify authenticity.
