Maybe. We do not know what state you are in. There are states in which a state refund can be seized for certain debts like traffic fines, unpaid tickets, etc., so it is possible that in your state they can take a refund for an unpaid utility bill. TurboTax will not know about any offsets to your refund, though. TT gets no information about debts you owe. If the state takes your refund they will send you a letter.