Although I have purchased both federal and state licenses for turbotax windows, it still asking me to pay state after uploading tax file. Any thoughts?

[xmasbaby0]

Are you using desktop download software?    The software includes the program to prepare state returns for one specific state of your choice, but there is always an extra $25 fee to e-file the state return.    You can avoid the state e-file fee if you print, sign and mail the state return instead.

[VolvoGirl]

What version did you buy?  There is only a license code for the Federal Desktop program.  In Deluxe and above you get 1 free state program download.   If you need to do a return for a different state you need to buy the second  state program for $45.  If you buy Deluxe in the stores it comes 2 ways.  Deluxe with a state program and Deluxe without state for states that don't have a state income tax.  If you  have the Desktop Basic program it does not come with a free state.

Are you switching from the Online version to the Desktop program and have the .tax file to upload to Desktop?  Or where did you get the tax file to upload?  Sometimes it does ask you to buy the state program to start which is wrong.  How much is it charging you?  A state program is $45.  But as said above in the Desktop program there is a separate $25 fee to E-EFILE each state return including the first one.  Or you can print and mail state for free.

If you have a .tax file and are trying to open it into a newly installed Desktop program and get an error there is some steps you have to do first.   After you get the program installed or reinstalled the first thing to do before you open your tax return is to update the program and install any state programs you had. Then open your file. So you first might need to start a fake return to be able to download the state program (go to FILE - NEW). Enter some basic information, then go to the state tab and download the state program. Then try to open your existing return, go to FILE - OPEN

Oh and be careful at the end when you file.  If you pick to have the $25 state efile fee deducted from a federal refund there is an EXTRA $40 (45 in Calif) Pay with Refund processing service charge.  So pay with a credit card to avoid the extra charge.