Yes, I just double checked to ensure all of the information is there. For part of the year the client lived in TX. Maybe that's the issue since TX does not pay state taxes?

Probably, do you have TX listed in the state portion of the W2 worksheet? 

If not, Id enter it, use the Fed ID number (since TX doesnt have a state ID number) and put the TX wages and zero taxes withheld.   

If you do have it entered, will it let you remove it entirely and leave it all blank?

You may have to uncheck that box to Automatically fill in the W2 worksheet, then it should let you leave the state portion blank.

I had TX listed. I deleted it and the error went away. Thank you so very much!!!!!

I am unable to resolve the following error: Part-year state allocation worksheet: SE Tax - TP Source State must be entered. I have done multi state returns before and never had this issue. The W-2 is entered as it should be. CA income, residing in NY. Very odd.