I found that it is just a front for H&R Block.
I believe that MyFreeTaxes.com is associated with the IRS VITA program, not H&R Block. However, H&R *may* be the ones supplying the software... I doubt the IRS has their own proprietary software just for the VITA program. The IRS and H&R have a well-known (in the tax industry, anyways) *ahem* "relationship."
The VITA programs use TaxWise software, which is also used by professional preparers.
Right, but really busy VITA sites also point more tech savvy clients to MyFreeTaxes... hence the assumed connection. I do remember hearing something about TaxWise being an H&R product - like maybe a stripped down version of what they use. I don't know, I could be mis-remembering that. It's certainly not an Intuit (Turbo Tax) or 2nd Story (TaxAct) product, and there's a really short list of companies that actually produce tax prep software.
**Edit: Went to the TaxWise website. Looks like TaxWise is a CCH product, not H&R Block. So now I have no idea why VITA sites point people to MyFreeTaxes. Throw the United Way's influence in there, and it gets really confusing:
http://www.unitedway.org/our-work/earned-income-tax-credit-and-free-tax-prepAt any rate, I don't believe any part of MyFreeTaxes should charge you anything - not state, not efiling. I'm guessing that you would get dumped into the H&R Block paid version if you were over the income limits... which, if true, would be a pretty sweet deal for them.