When I attempt to file, I get an error message that states "Update needed" but Turbo Tax states there are no outstanding updates. Why can I not file.

You may need to do a manual update. 

What is a manual update?

Thanks...tried that, but it did not work.

I would check the various pages, like Wages & Income, Deductions & Credits, Other Tax Situations, etc. Look at the status buttons, if the button is gray and labeled Update, you might want to run through that section looking for any problems.