Heres a link to a few free e-file services that are free. Most have a stipulation that your adjusted income be less than $54,000 or there is a fee.
http://www.irs.gov/app/freeFile/jsp/ind ... k#Company1
Since most ppl do not get State/local tax refunds, paper file them. Some of the free Federal e-file services will do your state e-filing for a small fee.