You must have misunderstood. TurboTax provides e-filing of both a federal and state tax return.
Using the online editions there are no e-file fees for a federal or state tax return. The TurboTax online account fees are for the use of the software to assist in completing a tax return. The online account fees are the same whether a tax return is e-filed or printed for mailing.
Using the TurboTax desktop CD/Download editions TurboTax provides up to 5 free federal e-files. There is an e-file charge for a state return when using the desktop editions. However, for a New York state tax return there is no e-file fee. Once then 5 e-files for the federal return has been used then all other tax returns, federal and state, have to printed and mailed. A state return can either be e-filed at the same time as a federal return or the state return can be e-filed after the federal return has been e-filed and Accepted by the IRS.
