I had the same issue with the zip code rejecting. I was double-checking everything and it all seemed to be correct. I had scanned the 1099 forms and uploaded to Turbotax. My wife finally noticed my anxiety and pointed out that Des Moines was in Iowa not in Indiana where the scan had misread the 2 digit state code. Once I changed the state code I was finally able to e-file. Make sure to check those details. There's a IRS list of approved zip codes @Standard Postal Service State Abbreviations and ZIP Codes.
