There are several reason why you are seeing this on your PDF.
Why does DO NOT FILE appear on my printouts?
The message DO NOT FILE or DO NOT FILE, FORM NOT FINAL will appear on your printout if:
The paper-filed (print) version of the tax form has not yet been finalized in TurboTax; or
Your federal return was printed before e-filing; or
Your state return was printed before your federal return was accepted by the IRS; or
The form is available but you haven't downloaded the latest update (CD/download versions only).
In some cases, clicking the Download all forms and worksheets link (instead of Download/print return) in your Tax Timeline will give you clean printouts without the watermark: