My Tax return was rejected. TurboTax recommended that i should file on paper

then why did TurboTax still charge me for efile? I understand they did one time transmission to IRS. However, the error should have been caught by TurboTax... but it did not. This sounds unfair.

Get your taxes done using TurboTax

If you are using Turbotax Online, e-filing is included in the price of the program, you are not charged extra, and don't get a refund if you can't e-file.  If you are using Turbotax installed on your own computer (which generally charges 19.99 or 24.99 extra to e-file a state return) then you can call customer support to get a refund of the state e-file fee.  Turbotax has no way of knowing when you try to file, whether or not the state will have any issues with your return.