Where in Turbo Tax Online can I fill out and file a 1049 SR for a deceased parent?

You can start a tax return using the TurboTax online editions.  In the My Info section you would need to enter their personal information.  There will be a screen where you can select that they passed away and the date of their passing.

I did that.  It says they do not qualify as a dependent.  I am entering the personal info into the correct area?

It looks like you may be trying to enter them as a dependent on your own return. You would need to create a new return for them from scratch.