I had a similar problem with trying to e-file my Virginia State Return. It wouldn't let me e-file because I had a 1099-DIV. I have e-filed with this form in past years and had no problems. I talked with someone at the Virginia Department of Taxation and they told me that they have not made any changes in the Virginia Tax code and e-filing with a1099-DIV should not be a problem. Your situation seems to indicate that there is something wrong with Turbo Tax. I have spoken to them several times but they won't admit a problem at their end and only blame Virginia. As you expressed, this is very frustrating.
