I found a work around. If you are in California- e-file your federal first thn once filed and you have confirmation its on its way then go back and file the State after you have completed the free federal filing. Chose e-file the State and it will come up w/o audit defense charge and you can just pay by credit card the normal fee and file it.
I have always loved to use turbo tax. This was so frustrating that they did this Automatic audit defense and asking for people to pay the higher fee when you file both Fed and State e-filing together. Hope this helps others.
