I am active duty military and have selected that under my info and on my w2. Turbotax is still trying to charge me to file for federal & state

It depends. Did you accidently upgrade to Turbo Tax live Service or live Tax Advice in your return? If so, you may wish to clear and start over to take advantage of the free return.

No I have not selected live.  I am using turbotax online Deluxe edition.  I have already checked to make sure that wasn't the problem.  I have also been on the phone waiting to speak to customer support for 3 hours now

To clarify until someone gets on the phone with you, what rank are you?

Active Duty E-7

Did you mark this box when you were in your personal information section?