My wife does not have ssn and she didn’t have income since she has an f2 visa. Ssn is required in TurboTax, what should i do?

If you are a US citizen or resident-

Without your spouse's SSN or ITIN, you won't be able to proceed to e-file, unfortunately.  You will have to paper-file.   It might be easiest to file Married Filing Separately, then you will not need to apply for an ITIN for him. If you want to file jointly, you will need to apply for an ITIN.  Either way, you won't be able to e-file and must paper file your taxes. You can still use the program to prepare your tax forms but submit by mail.  Below are the steps how you enter info in the program:

To file separately without the SSN or ITIN: 

• In the program, leave the SSN space blank
• After completing the return, print out the forms.  Write “NRA” in the spouse's SSN space. ( NRA stands for Nonresident Alien). Do not leave the space blank. 
• Submit all the forms and required documents to IRS based on the instructions on your print-out.

To file jointly, you basically file and apply for the ITIN together:

• In the program,  leave the SSN space blank
• After completing the return, print out the forms. Write APPLIED in the spouse's SSN space.
• As TurboTax does not support the Form W-7, fill out the forms by following  W-7 and attach other required documentation
• Submit all forms and documents to the IRS Austin location in Texas.  (see Form W-7 instructions)
• Please also see Nonresident to resident
  

We are applying jointly. If we submit all tax return documents and W7 form to IRS Texas, is it enough for filing our tax returns? Or, do we also need to submit to the Department of the Treasury (Internal Revenue Service for tax return) and Franchise Tax Board (for CA state tax return)?

 According to this Turbo Tax link, For CA State Tax returns you just need to mention as "Applied For" in the SSN field and submit it. Once you receive the ITIN, send the details to CA tax office to update the details. Keep in mind, you won't be able to efile but you can mail the return. mailing details are included in the link as well as the Turbo Tax mailing and filing instructions.