on the federal info worksheet did you check off the efile state box and pick NY? I'm efiling fed & NY returns with no problems. You probably missed the box. 

Thank you so much. This worked!

You betcha!

While the State of New York strongly encourages electronic filing, it is not correct that they do not accept paper returns.  I paper filed a return earlier this year for a non-resident who incorrectly had New York state taxes withheld from their pay -- I couldn't e-file because the return was requesting a full refund of all state taxes withheld.