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It sounds like you purchased the retail version of the federal and state together. If so, then the federal return is e-filed for free but to e-file the state return there is a $25 filing fee. But you can print the state return and mail it in for only the postage cost.
E-filing fee in desktop software
Did you purchase desktop software with state software included? They sell Deluxe both with and without state software--so you have to be careful which one you choose. And even if it does have the state software download included, that is for preparing the state. There is an extra $25 fee to e-file the state. You can avoid the state e-file fee if you print and mail the state instead of e-filing it.
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