The B will be accepted on the form. It's actually your last name's first letter. What you need to remove are the dashes and it will go through.
Have you tried leaving the driver's license radio button selected, but clearing the fields where you enter your driver's license information? The TurboTax Online software should allow you to leave the fields for your driver's license information empty and still e-file your state and federal tax returns. You have to be sure that all of the fields asking for driver's license information are empty.
It might be helpful to know that you can file both your federal and (in most cases) your state tax return without providing any information about your State issued ID or driver's license.
Only two states, Illinois and Alabama, require a driver's license to file a state return.
For additional information, you can view the IRS information on New Security Safeguards.