It's telling me You can keep working on your return and we'll remove this message when it's ready. So do I wait to file state? It's telling me I have to file Federal and State or delete State (and then do it on my own later).
It would be the simplest to wait long enough to file the state until the federal and state can be filed together.
Form 8915-E that is needed for the federal return was released February 26, 2021. However, the state implementation may still lag behind Form 8915-E. Please refresh the program and try again now to update the status. If your return is otherwise complete, then once the state forms are updated, you would be good to go.
To proceed, try closing the program and the browser completely. Re-open using an incognito Chrome browser to make sure the program is fully updating.
For more information, see: What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?
Is there a timeline for the NY 8915E update completion?
Form 8915-E (Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) has been finalized and released. Please see the FAQ link provided below for more information:
Why am I getting a 10% penalty on my 1099-R when I withdrew funds during COVID? (Form 8915-E)