I have two states installed, only need to file for one state. Why is turbo tax saying I have not finished the state I have not done a return? Do I need to uninstall ?

You are not required to file the unneeded state.  

 

According to Can I file my federal taxes now and skip my state for later?, there are 2 options to skip the state this in TurboTax Online:

 

• Delete your state return, then just file your desired state and federal return 

Or

• "When you get to the We've determined the easiest way to file your taxes screen, select Change next to your state return. On the Change filing method screen, select I'm not ready to file and Save."

I am being challenged by Turbo Tax and can't continue -- You Cannot E-File this Return. It says to return to that state to finish.  But I did not indicate or fill out anything for state #2.  

For whatever reason, TurboTax thinks that you need to file that state, even if you did not enter anything on it.

 

You need to delete the state, if you don't want to file it.

 

First make sure that the state you want to delete is not your resident state - you can't delete your state of residence. Yes, I know it sounds silly, but...

 

In the CD/download version of TurboTax, go to the upper left to FILE. Click on FILE and go down to Remove State Return. Click on that and remove the state you want to remove.

 

In the Online version of TurboTax, please see this TurboTax FAQ for instructions.