Below is a FAQ with the most common reasons why you have the DO NOT FILE watermark.
For your State return it is either that your State has not finalized all the forms you need to file yet and/or your federal return has not been accepted yet. Either way, it is a matter of waiting for the forms to be finalized or your federal return to be accepted. Once that happens the watermark will no longer appear and you can e-file (if your state allows the specific forms you have to be e-filed) or print to mail: https://ttlc.intuit.com/replies/3300737
Please see the state forms availability table below to see if all your State tax forms are available:
https://ttlc.intuit.com/questions/1908857-forms-availability-table-for-turbotax-state-except-busines...