Am i doing this wrong? i had to upgrade for $39 because of unemployment and they want $39 more to file state and fed.

There is a cost to prepare a federal, as well as a state tax return.  If you don't want to pay for state tax preparation, you have the option to delete the state return (if you haven't already paid) and only file your federal return.  Refer to the following Help Article for instructions:  How do I delete my state return in TurboTax Online?