A TT2016STATE file is a state tax form created by the 2016 version of TurboTax tax preparation software. It contains one or more U.S. state tax forms referenced by TurboTax when completing a tax return. TT2016STATE files are linked to a .TAX2016 file, which is the default file created by TurboTax to store a user's tax return.
When you begin filling out your state tax return in TurboTax, you will be asked to download the tax forms for your specific state. Click the "Download State" button, choose your state, and then TurboTax will download the TT2016STATE file(s) for your state and automatically opens them. After they are opened you can fill out your state return to finish your taxes. You will most likely never see the TT2016STATE file because it is downloaded and opened automatically by the tax software.
TurboTax is available in Basic, Deluxe, Premier, and Home & Business editions. Each edition provides different features at different prices. The Basic edition requires purchase of a TurboTax state return, whereas the Deluxe, Premier, and Home & Business editions come with one TurboTax state return included. You must purchase any additional state returns.