With desktop software there is always a $25 state e-file fee. You can avoid that fee if you choose to print and mail the state return instead. And you can refuse that $40 refund processing fee by paying the $25 upfront using a credit or debit card instead of choosing to pay the $25 from your federal refund. Look very carefully at that screen. You are given two options---one is to pay using your own card--it is on the left. The other option is to pay using your federal refund---choose that one and you are paying a grand total of $65 to e-file a state return.
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