The term "state download" means "software for state return preparation." It all depends on whether you need a state return or not. Do you have a state return to prepare and file? If so, you should not buy the Federal-only version. If you were to purchase the Federal-only version and then decide to prepare a state return, you would have to pay an extra $40 just to buy the state program to prepare the state return--whether or not you choose to efile the state return.
In contrast, in the combo Deluxe Federal and State, you get to download (free) 1 state program to prepare the state return. With that state software you can prepare multiple state returns of that same state. There is no fee to efile the Federal return. It costs $25 to efile each state return, but that fee can be avoided, if desired, by printing and mailing the state return. If you are buying from Costco, the product may also include a $10 credit which can be applied to that state efile fee. See the product picture and description at Costco's website; it's called a $10 in-product credit for add-ons, such as the state efile fee.
