My final state tax return shows that some forms are not ready (by large grey watermarks) even though I updated the return after Turbotax informed me the forms were ready.

For your convenience a table has been provided by clicking here that will let you know when all the updated dates of when forms will be ready. 

Hey Lindsey - thanks for trying to help but that's not the problem needing a solution. Turbotax informed me when new forms were available and I went back and updated the results using the new forms. The Federal return updated correctly But the State tax return did not update with the new forms. In fact I see the old forms with watermarks that state "Do Not Use This Form" in the state return. In addition when I went to submit the federal return Turbo Tax assumed that I wanted to submit both federal and state returns. So a state return was submitted with the watermarked forms. I would like to know how do I update the state return so that there are no watermarked forms. I am certain that the state is going to reject the return because of those watermarked forms.

Thanks again for trying to help. There wasn't enough space to allow me to give a more complete explanation in my original post.

Don't worry about the DO NOT FILE message if you already e-filed and you're just printing copies for your records. More details explaining your situation has been provided by clicking here. 

During the E-filing process, there is a place after selecting efile, that lets you choose to not E-file the state at the same time...so It's almost impossible for us to tell what you actually did. 

After the Federal/IRS responds...with either an "Accepted" or "Rejected", you may be able to see what yoru state situation is.  IF the IRS Rejects taht Federal filing for any reason, the state is automatically terminated and doesn't go in.   IF the IRS "Accepts" what you filed, only then with the state file be transmitted...IF>>>IF you really hit the button to e-file it.  (If you log into yoru account, and the State section says "Started' then it wasn't efiled.)

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One other thing...a few states allow Electronic e-filing before they allow their final paper forms to be printed without the DO-Not-File mark on them, and that could be the situation for your state.  IF that just happens to be your case, your state forms "should" update to the non-watermarked forms after the date that the print-file forms become available.