TurboTax cannot take money from your federal refund and send it to your state for you. This is prohibited by law. However, there is a summary screen that shows you what your "net refund" will be after you receive one refund and pay another balance due. This is just information to sort of sum up your overall refund. However, you must still make independent arrangements to pay your state balance due - TurboTax cannot pay your Indiana taxes for you out of your federal refund.
You can find out more about your federal refund offset by calling this automated number 800-304-3107. TurboTax does not receive information about your offsets or any other communication from the IRS once your return is accepted.
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