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I found free efile for both Federal and AZ State on www.az.gov
Each year the Arizona Department of Revenue provides opportunities for taxpayers to file their Arizona Individual Income Tax returns electronically at no cost.
The Arizona Free File Alliance is an agreement between the Arizona Department of Revenue and several software companies to provide free online services for qualified Arizona taxpayer. Any software company may participate in the alliance. Each company determines its own free filing offer.
http://www.azdor.gov/EServices/Individuals.aspx#ind
The following tax filing software companies are participating in the Free Filing Alliance in Arizona:
Intuit (TurboTax within Intuit Tax Freedom Project)
TaxHawk
TaxSlayer
Average1040.com
OLT.com (Online Taxes)
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