This happens during the filing process, when the state preparation fee has not been paid for. Deleting the state and starting it over will resolve the issue. You will need to go through the complete state interview and review to then be prompted to purchase the State preparation fees in the "Review Your Order" screen. Once paid for and completed you will be able to e-file your state returns without error.
Please see the TurboTax FAQ below for more information and instructions on how to delete your State return in TurboTax Online:
There's an additional per-state charge in TurboTax Online Deluxe or higher.
You can delete your state return in TurboTax Online as long as you haven't paid or registered yet:
- Sign in and open your return if you don't already have it open.
- From the left-side menu, select State (click or tap the 3 white lines if you don't see this) and then select Continue on the Let's get your state taxes done right screen.
- On the following screen, Status of your state returns, select Delete to the right of your state, then answer Yes.
If you don't see the option to delete your state, it means you already paid your TurboTax fees (which includes the state fee) or registered your free version while the state was still on your return.