I inherited an IRA of 9238 from my grandmother. The finance company withheld $1365 in federal tax, $369 in state tax. Turbo tax doesn't show me being fully refunded

[abbyebutler]

Federal refund didn't reflect a full refund of $1365 & 369  being refunded to me.

[dmertz]

You only get refunded that portion of your total tax withholding that exceeds your total tax liability.  Tax withholding does not apply to any particular item of income.

[SweetieJean]

Understand that, even though it was inherited, it may still be subject to Income tax.  (This is different from Inheritance  tax or Estate tax).