RESOLVED
I had the same issue, and after talking to customer service I got it resolved. It seems it is a non-intuitive glitch in Turbotax that should be fixed.
In order to file your state tax electronically have to pay 24.99, but if you want to avoid paying 44.99 for and for Turbotax Audit Protection, you have to pay with your credit card. I tried and it and worked.
Hope that helps.
