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Turbotax, cannot deduct its fees from state refunds. As a matter of fact, if there's an offset in effect, you may not even get your state refund
I think this year for 2025 returns you can have the fees deducted from either a federal or STATE refund. It might even be whichever refund is payed first.
2/10/26 New FAQ
Pay With Your State Refund is now available for taxpayers filing state taxes in Arizona, Colorado, California, Illinois, Ohio, Oregon, Michigan, and/or Wisconsin. To be eligible, you must meet all Refund Processing eligibility requirements (see above) and your state refund must be enough to cover your total TurboTax fees. If eligible, your TurboTax fees will be deducted from your state refund when received from your state agency. If you receive both a federal and state refund, fees will be deducted from whichever refund is deposited first and is large enough to cover your total TurboTax fees.
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