I had the same problem. Endless loop. CA state wouldn't show up. Tried all the advice given online as well as the help of a tech support person over the phone. Nothing worked. I finally figured it out, though.
Here's my relevant backstory: In my case, (prior to encountering the endless loop problem) I had originally purchased the Deluxe version. Then I realized I needed the Home and Business version. So I uninstalled the Deluxe version using the TTax uninstaller. Then installed the Home and Business addition. OK so far. Then I put in all my info, OK so far. Then tried to download the state. No luck. Tried over and over, uninstalling and reinstalling TT, etc.
Here's how I finally solved it. I looked in my C: > Program Files (x86) > TurboTax folder. There was my Deluxe version that I had already uninstalled, still there in addition to my Home and Business version. Aha! Defective TT uninstaller! So I looked in that Deluxe folder. The only thing there was the Forms folder. Looked in there, saw 2 folders: 1040_## and cai_##. CA stands for California. So, I figured that CAI folder must be the CA forms I need - even though I definitely did not download the CA state forms while using the Deluxe version. So I figured the defective uninstaller did not remove all the TT Deluxe info from the registry, so the installer for the state forms saw TT Deluxe info in the registry so it put the CA forms there by mistake (even though I was using the Home and Business edition to download the state forms). So I copied that cai_## folder to the Home and Business > Forms folder, restarted TT H&B and it worked! There was TTax telling me that I owe money to CA. Sigh. At least not as much as I was expecting. Yay?
