My free state filing is costing $25

I had the same thing happen last year, when I had to pay $20, but I don't remember the offer being as clear as it is this year.

Yes. This is a common and frustrating point of confusion with TurboTax Desktop, even with promotional offers like the Fidelity $5 deal. However, there's a difference between the cost to prepare the return and the cost to e-file it. 

TurboTax Desktop software treats, "file" and "e-file" ‌as two different things. Here is why you are seeing that $25 charge despite what the ad said.

Your $5 payment covered the "Premier" software download and the "State" software module. This allows you to prepare (generate the forms for) one federal and one state return. This is quite a savings in itself. as the price is over $100 for the Turbo Tax desktop product. It does not cover the price to electronically file your state return.  This is a separate charge. 

When the ad says you can "File" your state return for $5, TurboTax points to the fact that you can file it—by printing and mailing it. They consider the paper filing to be the "free" way to file that was included in your $5.

To avoid the $25 fee and still use the software you paid $5 for, you must change your state filing method.

1. Go to the File tab at the top of the program.
2. In the "Review your filing method" section, look for your State return.
3. Click Change or Edit next to the state.
4. Select "I want to mail my return" instead of "E-file."
5. Proceed to print. You will receive the actual forms to sign and mail, and the $25 charge will vanish from your cart.

Is There a Fee to E-file my Turbo-Tax return