I did not pay what I owed last year, has this been taken out of this years return?

No, it has not. Turbotax has no way of knowing what your unpaid balance from last year is.

That doesn't make sense. I have filed my last 5 returns with TurboTax.  If they can tell me how much I owe every year then why wouldn't it show how much I owe this year. Also if they can tell me how much I will receive from federal/state why would it not be able to tell me how much federal or state wants from me to pay back? I found a similar question below on TurboTax and they said if you owe back taxes it will withhold it from how much they are going to give you.

The Turbotax software does not keep track of what you owe from year to year, the software would have no way of knowing what you actually paid or didn't pay. If you have back taxes owed that the IRS has put into collection status, then the IRS will automatically take it out of any refund, Turbotax has no connection with that at all.