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.

[tthoubboron]

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

[diazoesp]

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.

[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.

[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. 

[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."

[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.

[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!

[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.

[Mdrmnd]

I filed on-line, but using purchased/downloaded software. I filed last Friday and just got the reject e-mail today. I'm thinking of waiting a few weeks, also, to see if Oregon needs to make some updates on their end. When I open my Turbo Tax it says I'm up to date.

[Mdrmnd]

Also, I've e-mailed Oregon Dept. of Revenue, I'll let you all know If I hear anything.

[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. 

[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.

[otterjn]

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

[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."

[Mdrmnd]

Was this the 2020 publication OR-17 you downloaded?