OR_FederalTaxLiability_SoftwareUpdate_R18_TY21 What does it mean?

[christian_meji]

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

[Katina S]

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.

[christian_meji]

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

[LindseyLO]

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.

[Michaelfrank]

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!

[christian_meji]

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

Thanks

[jlggps1]

@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."

[Loosh]

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

[CarissaM]

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

[morghan]

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. 

[lxjensen]

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.

[christian_meji]

@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. 

[morghan]

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.

[RC0414]

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

[Jamsz]

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.