There may be a bug in Turbotax that the spouse's AGI is not transmitted to the IRS. Or, it could be that the social security administration has blocked the deceased person's SSN, and the IRS is sending the wrong error message. Most likely, you need to print your returns, sign and mail them. Sign your name in the space for your spouse and write "personal representative."
If you would like to try and help us figure out if it is a bug, create a diagnostic file by going to the help menu and select "Send file to agent." This sends an anonymous version of your file to tech support and gives you a token number. Post the token number here, so tech support can associate the diagnostic file with the complaint.
If you paid a separate state e-filing fee in the desktop program and can't e-file, call support for a refund. The online program does not charge a fee for state e-filing, the state prep fee includes e-filing and there are no partial refunds if you can't e-file. https://support.turbotax.intuit.com/contact/
MY FIL passed away last year. My MIL is the surviving spouse. I kept getting the error message when I e-filed that many people have posted about. I switched the order of the two names, to put my MIL first, and the return was accepted! I was able to keep the deceased box checked for my FIL and I put "widowed" for my MIL.