I assume you took itemized deductions in 2022 and used state income taxes rather than state sales taxes. if that's the case netting the payment in 2023 with the refund received in 2023 is not how it works.
if you want to check the computation done by Turbotax see PUB 525. There is a worksheet in your tax file that computes the taxable portion. if you are using online, you won't be able to see it until you pay any fees that are owed.
https://www.irs.gov/pub/irs-pdf/p525.pdf
start with worksheet 2a on page 27
be sure to read the instructions
as an overview a portion of your refund is allocated to the state income taxes you deducted in 2022 with the rest to taxes paid in 2023. the refund allocated to 2022 is the taxable portion. As you will see if you look at the worksheets and instructions other factors enter into determining the taxable portion.
