No, TurboTax doesn't automatically deduct from your Federal Refund if you owe State Taxes. Unfortunately, because the IRS and State Tax Departments each maintain their own, separate tax collection systems, you cannot use a Federal Refund to pay what you owe for State Taxes, nor the other way around.
You will need to mail in a separate payment to your State via check or money order for the State Taxes you owe. Depending on the State, you may also be able to make the payment online. Check here for your State Tax Department Contact Info.
