When this happens and you cannot e-file your state return, you will have to print and file your return by mail.
See How do I print and mail my return in TurboTax Online?
Some states will not accept an e-filed return that shows more withholding than taxable income. It is a red-flag when you have more tax withheld than what you are claiming to have earned; in the past this has been one way for criminals to obtain a fraudulent refund. For this reason, some states require a written return, giving them more time to ensure the return is accurate.
