You are posting from Deluxe.  Online Deluxe does not include state prep--that is an extra fee.

Desktop Deluxe comes both with or without state software.

And download/CD Deluxe with State does not include the state e-filing fee, except in New York where it is mandated by law.

So, does that mean that because I bought the deluxe version, if I install it by the installation disc, I can download my State and do the prep work for it? And if I use the web based installation, it will cost me for the State to download?

Yes.  When you use online TT, the federal and state programs are separate fees.  When you use onlne, you are not really "downloading" anything--you are using the program online.

I appreciate the information however, it does not seem to be quite accurate and very frustrating. Bottom line, I bought TT Deluxe yesterday. I went out and got an external drive so I could load it without invoking the online install. I go to download the included state, which should be free to download (not e-file) and it is still asking me for 39.99 to download the "Free" state. What am I missing here?

Which Deluxe did you buy?   When you buy Deluxe in the stores it comes 2 ways, Deluxe with a free state program download and Deluxe without State for states that don't have an income tax.  Check the box.  It should say Fed - Efile + State.

If it's trying to charge you to buy the state program, Contact Customer Service
5am-9pm Pacific Time Monday - Sunday
https://support.turbotax.intuit.com/contact/

What is the Turbo Tax phone number
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

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@ScottNavy1701 wrote:

I appreciate the information however, it does not seem to be quite accurate and very frustrating. Bottom line, I bought TT Deluxe yesterday. I went out and got an external drive so I could load it without invoking the online install. I go to download the included state, which should be free to download (not e-file) and it is still asking me for 39.99 to download the "Free" state. What am I missing here?

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Where did you purchase the TurboTax Deluxe edition?  If you purchase from a retail outlet the Deluxe edition comes in two versions, one with and one without the state program included.  Look at the box, the CD or website where it was purchased.

If you purchased directly from TurboTax then the Deluxe edition does include one free state program download included in the purchase price.

If you are being asked to pay from the state return using the TurboTax purchased software then contact TurboTax support for assistance, since there is no charge for the state program.

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/
Support can also be reached by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax

Also be careful on the screen to pick the state. You just click Edit or Start by the state listed and not Add State at the bottom, that's to buy another one.

Did you first try updating the program? Go to Online - Check for Updates. Then close Turbo Tax and reopen it or even reboot your computer. Then try downloading the state again. Maybe it already gave you a different state for the free one. Is there any other states listed on the state tab?