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The free state is for the TurboTax Free Edition version only. You can see that here https://turbotax.intuit.com/personal-taxes/online/ as well.
Notice under all other versions it lists State additional and if you click that, it shows pricing for state with those versions. It looks like you are posting from TurboTax Premier and state is additional in that paid version of the software.
I see, it’s kind of a trick.
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