My refund amount was for $827 I owe the state $123 it says my total refund amount is $704 i set up a payment arrangement so that the IRS could take their money directly out of my bank account. my ques

Are you getting a federal refund?  Then why did you set up a payment?  You mean for the state?  Yes that's right.  Turbo Tax only shows you the Net combined amount at the end.  But that is only for your own info.  You will still get the full refund and need to pay the state tax due yourself.  You can not have a state tax due deducted from a federal refund.

See this,
https://ttlc.intuit.com/replies/3984737