My understanding is that if a 1040EZ is appropriate for you, then TurboTax will also be free. It's only if you have a more complex filing situation that they charge. Please correct me if I'm wrong, though.
It’s only free for federal, then they change you for state. I’m sure if they charged for both the final cost would be the same. They jack up the price of the state tax filing to cover the “free” federal taxes.
This is how pretty much every “free” tax program works.