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This issue is scheduled to be resolved in a product update March 19, 2021. Please click on the following link to receive an email notification when any updates become available.
Not able to e file state return after Federal
The CARES Act provides tax relief for up to $100,000 of COVID-19 related distributions from eligible retirement plans. So, if you, your spouse, your dependent, or a member of your household was impacted by the coronavirus and you withdrew from your retirement accounts in 2020 before the age of 59 ½, you may not have to pay the 10% early withdrawal penalty (or the 25% additional tax for SIMPLE IRAs).
It’s now March 20th and I’m still getting the same message. Was the update delayed?
Not necessarily, but there were other changes as a result of the American Rescue Plan that also needed to be implemented into the state returns and this could be causing a delay on your state return now.
IRS Statement on American Rescue Plan
TurboTax is in the process of updating the software to account for the latest changes in the tax law for 2020 income tax filing. Some states conform but others do not. I recommend signing up for updates using the link below to be notified when the software is updated to reflect all of these changes.
Software updates for tax changes
Still no updates.
I have tried many times to sign up for notifications to updates, but been unsuccessful. Your link takes me to an entirely different question and still no way to sign up. @JotikaT2
There is a link to sign up as shown in the picture below. Again, as I cannot see your return, it is possible your state return is not allowing you to electronically file due to the changes in the unemployment taxation as the software is being updated.

If this does not apply to you, you can also use the link below to contact us for assistance and an agent can help determine why you are unable to file your state tax return.
Mine does not have that option, like in your picture.
I don’t have any unemployment income, so that’s not my issue.
@tdjarrett You can file your Federal return now, and file your state return separately later.
Click this link for more info on Filing Federal and State Returns Separately.
West Virginia Dept. of Revenue says they have updated their forms to comply with the Federal CARES Act.
Try going back to your original 1099-R entry in your Federal Return, and stepping through the section in EDIT mode. Then return to your state and go through the interview there again.
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