My spouse passed away 6/8/2016. However, Turbotax is insisting on a state of residence as of 12/31/2016. What am I supposed to do?

You are considered to be married for the entire year, so you should use his state of residence before he passed.

Note: You can still file married filing jointly this year.

I am sorry for your loss.

FINE FOR FEDERAL BUT WHAT ABOUT STATE