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No. You misunderstood. The state tax can not be deducted from the federal refund. You can only have the Turbo Tax fees deducted. You will still get the full federal refund minus any fees you had deducted. Turbo Tax just shows you a screen at the end showing the Net amount of federal and state combined. But it is just for your own info. You do still have to pay the state yourself separately. See,
No. State taxes owed can never be paid from a federal tax refund.
If you have state taxes owed and you did not pay those taxes, go to your state tax authority website to pay the taxes owed.
and federal taxes owed can not be paid from a state refund.
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