My husband is active military and a resident of California. I am unemployed and a resident of Virginia why does it have us owing va tax? I didn't earn income in 2016

You are correct.  California no longer taxes military income outside of California.  You may want to double-check a few entries in TurboTax.  First, make sure you answer no to the questions if you lived or worked outside of California.  Since you don't work, he is not considered to work in any other state as regards active duty pay when he is only stationed there.  Next, make sure that your W-2 is marked as active duty military:

1. Sign in to TurboTax Online, click take me to my return, then pick up where I left off.
2. Click on Wages and Income, then Edit on your W-2
3. Scroll through the screens until Do any of these uncommon situations apply?  Make sure the Active Military Box is checked.  (Screenshot at end of answer)

Next, go slowly through the California state entries.  There likely is a box that asks for the amount of active duty military pay while stationed outside of California.  You will enter the correct amount (sounds like all of your active-duty pay last year).  This should make your active-duty pay non-taxable.

Here is what your screen will look like to mark your W-2: