Question

How to Fix Rejected State Return?: Oregon Federal Tax Liability Hold - Oregon Form 40, 40N and 40P Federal tax liability subtraction requires a software update.

Forum|Forum|5 years ago
February 17, 2021
19 replies
0 views

My OR State return was rejected and I'm not sure how to go about fixing it. Thanks for the help!

TurboTax Deluxe Online

Hi,

I received the same error message. When I open the turbo tax app and review my State tax return, there is no error. I am on hold waiting to speak with someone about this.

D

diazoesp

I just spoke with a turbo tax rep, all they said was make sure the application is updated and efile again. We have to wait to see if it will be accepted or rejected again. Honestly the rep I spoke with didn't seem confident on her answer.

F

freik1

Downloaded today and was rejected again.:(

O

otterjn

This just happened to me also. I updated the software, printed it out and no change was made. Will follow to see what the answer is.

J

Jbuck4

I had the same thing happen to me, I don't know how to fix? how do you update the software update if you filed from the website and not the app? or does that even matter?

"Oregon Federal Tax Liability Hold - Oregon Form 40, 40N and 40P Federal tax liability subtraction requires a software update."

M

mstuett

I received the rejected/refile email, updated TurboTax but now I owe more money to the state. Not sure what changed between now and when I filed last week.

M

Mdrmnd

You should look at the publication 2020 OR-17, I believe the second page has "important updates" read that and also specifically pages 65 & 66. Fill out the worksheet according to the instructions. If your Oregon Federal tax liability subtraction is less than the first time you filed, that is probably why your tax due increased.

I'm having the same reject error and my Turbo Tax says it is up to date. Frustrating!

C

cmdr_taco

I filed via the web last night & received this error ~12 hours later. It says to update software or if you file via web to just "login and refile" ... but yeah, I'm pretty skeptical that they've fixed the bug in the last 12 hours.

Based on this post & others, seems like I should probably wait a few weeks for the dust to settle & refile then.

O

otterjn

On Form OR-40, line 10 is miscalculated. I downloaded the instructions for the Form from the Oregon Department of Revenue website. On pages 13 and 14 it shows how to manually calculate your 2020 federal tax liability. Mine was off by 1,200 , and my refund should be higher. I also think that the Turbotax software has not been updated yet, since this is news to us, it must be news to them also.

M

Mdrmnd

Was this the 2020 publication OR-17 you downloaded?

J

j589

Same problem. Any resolution?

M

MichelleLO

When you log back into your TurboTax account, you will see the reason your tax return was rejected and the steps to follow. For assistance with fixing a rejected return, click here.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

O

otterjn

Went back in and it read "Errors Fixed & Ready to File". Clicked on that and off it went. Hope it works.

B

BillM223

You are likely OK. Just a few minutes ago, moderator GabiU posted on similar questions the following:

"Have you tried submitting again?

There was an issue with your state return that has recently been fixed. Update your software to the latest version (online products update automatically after logging in), run through final review and transmit your return again. The calculation change may affect the balance of the tax return."

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

N

no0kafish

Got the same rejection reason. Looks like it's happening again? It said to come back on or after February 17th to update. It's weird the error would be on the same date to update as last year.

P

PNWtrees

I noticed that too. Same date, really odd...

Hoping this gets some views so we can have some answers

R

RobertB4444

I know it's weird but the February 17 date thing is an honest to god coincidence.

The IRS started this tax season pretty far behind. That kind of delay flows down to the states. So the IRS finalizes their forms and then the states finalize their forms. And then the TurboTax programmers get the forms and have to integrate them into the TurboTax program. Then there is testing to make sure that the newly added forms work with the program properly. Then they are rolled out to the public. As inconvenient as the waiting is it will still get your tax return processed faster than paper filing it.

Here is the timeline for the release of state forms on TurboTax.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

E

EdwardGivens

ONE YEAR LATER and Turbo TAX is still making the same error.

The difference? Now they charge you.

K

KristiJ

It’s the same thing they did last year they’re taxing your stimulus money by taking away part of your federal credit

E

EdwardGivens

The point is

TurboTAx is supposed to figure that in

AND DIDN"T

again.

what am I supposedly paying for if your software isn't up to date and my return keeps getting rejected?

S

StantheMan

Employee

Same Oregon Federal Tax Liability Hold with me. QUESTION: After applying the necessary Product Update on or after Feb 17, do I just need to only re-eFile the Oregon form (since my Federal form was accepted), or do I need to re-file both State and Federal forms? Logically, only the State form would need re-filing, but logic does not always prevail.