Extensive calculations of the atomic data required for the spectral modeling of the K-shell photoabsorption of oxygen ions have been carried out in a multicode approach. The present level energies and wavelengths for the highly ionized species (electron occupancies 2<=N<=4) are accurate to within 0.5 eV and 0.02 Å, respectively. For N>4, lack of measurements, wide experimental scatter, and discrepancies among theoretical values are handicaps in reliable accuracy assessments. The radiative and Auger rates are expected to be accurate to 10% and 20%, respectively, except for transitions involving strongly mixed levels. Radiative and Auger dampings have been taken into account in the calculation of photoabsorption cross sections in the K-threshold region, leading to overlapping Lorentzian shaped resonances of constant widths that cause edge smearing. The behavior of the improved opacities in this region has been studied with the XSTAR modeling code using simple constant density slab models and is displayed for a range of ionization parameters.