Thanks for the help.
Solution was to re-file the State return.
Cause seemed be that Federal and State returns were filed at the same time. State return requires that a Federal return be accepted before the State return can be accepted. Federal return was still being process when State return was filed so State return was rejected. Federal return was accepted so re-filing State return (for free) solved this issue.
Would be nice if TT would delay the filing of the State return by a short time (15 minutes?) after the Federal return is filed so that this race condition cannot happen.
