The $40 is the Refund Processing Service charge if you want to have any Turbo Tax fees deducted from your federal refund. The free state you got is only a free state PROGRAM download. Then each state return including the first one is $25 to efile or you can print and mail state for free.
Go back through the File tab SLOWLY and read the screens. People get going too fast and clicking on the right corner box to continue. But you have to click on the left box to pay with a credit card to avoid the fee.
