This early in tax filing season many state forms are not yet finalized and available.
See the table at the FAQ below and look up your state. It will tell you when your state forms are available for printing, and when they are available for efiling.
When the forms are available, the watermark should disappear.
State forms availability dates:
https://ttlc.intuit.com/questions/1908857-state-forms-availability-table-for-turbotax-individual-per...
Did you already efile the Federal return? You may still be able to efile the state return later when the forms are available.
If your Federal return has already been efiled, you will have to wait until the
Federal return has been accepted before you can efile the State
return. The IRS will not start processing returns until January 23,
so soon after that date you should hear if your Federal return is
accepted or rejected. (A few returns will be pulled by the IRS before
then for testing purposes so some people may get an early
acceptance/rejection notice.)
So once your Federal return has been
accepted (if efiled), and once all your state forms are available, you
can then
go back and open up your State return to complete it. Carefully review
it before filing since the forms may have updated since you last worked
on it.
