Sorry but you misunderstood. There is a lot of confusion about this. For the Desktop version it's a free download of one state PROGRAM, not returns filed. You can prepare unlimited federal and unlimited state returns. Some people need to file in more than one state so they have to buy another state program. You can print and mail the state for free or each state (including the first one) is 19.99 or 24.99 to efile. If you buy the cd at the store the Basic version does not include the state. And Deluxe is available both with and without the state. Because some states don't have an income tax.