No, you misunderstood. That's not possible. You might have had the Turbo Tax fees deducted from your refund. Did you get your federal refund yet? Check your bank account. Did the IRS reduce your refund? Check 1040 line 35a.
The state tax can not be deducted from the federal refund. NEVER. You can only have the Turbo Tax fees deducted. You will still get the full federal refund minus any fees you had deducted. Turbo Tax just shows you a screen at the end showing the Net amount of federal and state combined. But it is just for your own info. You do still have to pay the state yourself separately.
