I'm sorry for your loss. I suspect the bug is in the IRS computers, not the TurboTax program. The message I would expect you to get on the rejected e-file attempt is "SSN LOCKED". This indicates that whoever handle the final arrangements did their job and notified the Social Security Administration of her passing.
The IRS pulls their data from the SS database every year. Usually around December. So if your spouse had been reported as having passed in 2019, the IRS would have locked her SSN so that it could not be used fraudulently. This being the case, you have no choice but to print, sign and mail the return to the IRS this year.
- Yes, you were correct to file MFJ for 2019 because you are still entitled to her standard deduction for the entire year, regardless of the date she passed.
