The IRS website has been updated to show their free 2007 filing options for those people with adjusted gross incomes under $52,000 and satisfy certain other conditions that vary by preparer. Remember, 401k contributions lower your AGI so you may be better off than you think. Also, you only pay at the end, so if you end up over the limit you can still back out. There is even a helpful form to determine which companies are free for your specific situation.
If you have state income tax returns, be sure to look up those prices ahead of time, they can be $30 or higher and ruin any potential savings (TurboTax, TaxSlayer and TaxEngine offer free returns for certain states). Anyone can get a free Federal return + Free E-file + $12.95 State return at TaxACT, so there is really no need to pay more than $13 unless you have complicated taxes.
State Farm customers may also get free TurboTax Federal + State filing by signing up for online access and linking your accounts.