No, you misunderstood.

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.   See,

https://ttlc.intuit.com/community/state-taxes/help/can-i-pay-my-state-taxes-from-my-federal-refund/0...

And you don't get anything from Turbo Tax.  If the IRS reduced your refund the IRS will mail you a letter explaining it.  Double check your actual 1040 return line 21a.  Maybe you said to apply part of your refund to next year?

Oh I should have mentioned.....At the end Turbo Tax shows you a summary of the net combined federal and state. But that is only for your info. You will still get the full amount and need to pay any tax due separately yourself. 

So have you got your federal refund yet?  It should be for the full amount 533.