topic Re: Oregon manual processing in Get your taxes done using TurboTax

OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

christian_meji — Mon, 09 Mar 2026 06:10:01 GMT

My state refund got rejected and this is what the say its wrong.
What should I do?

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

Katina S — Tue, 15 Feb 2022 01:08:18 GMT

Please use the help in this FAQ to see what you can do to fix your rejected return. If this doesn't help, please let us know so we can further assist.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

christian_meji — Tue, 15 Feb 2022 01:10:42 GMT

I have tried to do it on the site but no luck. That's why I'm posting here. I'd appreciate further help. Thanks

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

LindseyLO — Wed, 16 Feb 2022 02:13:45 GMT

This is a known issue and is being looked into at the moment. Please check back at the end of the week for an update.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

Michaelfrank — Wed, 16 Feb 2022 03:07:22 GMT

I got this same message. On the website it said come back on the 17th or later. I am curious what caused this. Let me know if you find anything out. Thanks!

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

christian_meji — Wed, 16 Feb 2022 03:11:20 GMT

@Michaelfrank I will let you know what's the outcome. Please do the same if you find out before

Thanks

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

jlggps1 — Wed, 16 Feb 2022 03:53:31 GMT

@Michaelfrank & @christian_meji

I got the same "Reject Code OR_FederalTaxLiability_SoftwareUpdate_R18_TY21" however I get the information below when I attempt to "fix it" in TurboTax. Hope this helps.

"Your Oregon tax return is on hold pending a product update to Federal Tax Liability. Please check back for updates.

What needs to be done:

There is a known issue with your Oregon return around Federal tax liability subtraction that we are currently correcting. The third Federal economic stimulus payments were not being included in the calculation. Please come back on or after February 17, 2022 and apply any product updates (online products update automatically). After applying the update, go through your Oregon return again, run final review, make any applicable changes if necessary, and re-transmit the return(s). Note: The calculation change may affect the taxpayer's refund."

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

Loosh — Wed, 16 Feb 2022 04:19:32 GMT

Also here for the same reason. Guess I’ll wait till the 17th and check back

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

CarissaM — Wed, 16 Feb 2022 16:30:42 GMT

@Loosh We apologize for the delay this is causing. Things should be resolved on Feb 17, 2022.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

morghan — Wed, 16 Feb 2022 23:53:16 GMT

If I have to guess, I'm going to say the software didn't subtract the third Federal Stimulus payment from the Federal Tax Liability amount on line 10 of the 2021 Form OR-40. It looks like it just plugged in the full Federal Tax amount without subtracting the stimulus payment. They need to update the software to account for that. Just one of the weird things about the Oregon returns. They did get the Kicker spot on, so that's good. If I'm right, the amount of your refund will change after the software fix.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

lxjensen — Thu, 17 Feb 2022 15:57:11 GMT

I got the same error and used TurboTax online. I tried submitting again today since it's the 17th and it was rejected again, so I guess I'll have to wait longer. Pretty frustrating.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

christian_meji — Thu, 17 Feb 2022 16:00:53 GMT

@lxjensen Im going to wait till later tonight or tomorrow to re file.

Thanks for the update. I will post when i get some answers.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

morghan — Thu, 17 Feb 2022 16:13:17 GMT

I refiled this morning and it was rejected again. I looked over the calculations, and it did account for the third stimulus payment this morning, so they must have fixed that part. The new refund amount matched what I'd calculated doing my taxes by hand. So, now we just wait for the software error message to clear up, I guess.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

RC0414 — Thu, 17 Feb 2022 16:29:00 GMT

I tried resolving these issues on the 17th but still my state return has been rejected? Please advise

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

Jamsz — Thu, 17 Feb 2022 16:39:49 GMT

Had the same experience, still getting rejected on 2/17. Will there be confirmation when this is resolved or are we expected to keep trying? I agree this is frustrating having already paid to file my state return and not having a clear set of expectations set despite the money being drawn from my account.

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

dchristen14 — Thu, 17 Feb 2022 17:23:34 GMT

Yes why am I paying full price when for something that is clearly not working?

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

Drew76 — Thu, 17 Feb 2022 17:50:15 GMT

What a joke! I ran the update, this morning, which coincidentally screwed me out of more money, then I resubmitted. Now I get another email saying that my e-file was rejected for the exact same reason. How can we trust anything that TurboTax says, when we do as we're told and still get the exact same results?

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

siskiyous — Thu, 17 Feb 2022 18:07:51 GMT

well, it's not resolved. I updated, filed again this morning, and it's rejected again

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

dchristen14 — Thu, 17 Feb 2022 18:09:16 GMT

Not resolved and I still have money missing from my account to pay for a service that does not work. Thanks TurboTax!

Re: OR_FederalTaxLiability_SoftwareUpdate_R18_TY21What does it mean?

gunitInTheHouse — Thu, 17 Feb 2022 18:20:00 GMT

@LindseyLO or @Katina S or anyone else at Intuit --> Any update here? The state of Oregon is broken across the board it seems.