First, TurboTax cannot take your state refund and apply it to a federal tax owed. It’s impossible. Your state refund is processed and paid by a completely different agency and TurboTax has absolutely no authority to go into your bank account, withdraw your state refund, and send it to the IRS. The IRS does not have the authority to confiscate your state tax refund either, because federal debts or separate from state debts. So, you must have misunderstood something.
Second, if TurboTax prompted you to print for payment vouchers, those are for estimated taxes for 2023, not your current 2022 tax due. If you owe substantial amount for 2022, TurboTax will print suggested tax payments for 2023 so that you can be paid in full and not owe any penalties. However, the estimated vouchers are not for your 2022 taxes owed.
You owe your full federal tax bill by April 18. If you don’t want to pay it through TurboTax now, you can select “I will pay by check“ and then you can make your own separate payment arrangements. You can pay online at www.irs.gov/payments, and you can pay in full or you can make partial payments. If you want a payment plan, you have to apply for that directly on the IRS website and there is a non-refundable application fee. If you think you can pay in full by August, it is usually better to just pay when you can rather than request a payment plan, because the nonrefundable application fee for the payment plan is probably going to be higher than the interest you would owe on your late payments.
