Are taxes that were withheld from my interest income 1099-INT deducted from the total taxes I owe?

It is somewhat uncommon for taxes to be withheld....but it happens.

IF you entered the actual $$ withheld, as a part of yoru 1099-INT entry  (box 4 for Fedeal taxes), then they are credited and added to the total Federal withholding credited on line  25d of the form 1040  (a brief breakdown is on lines 25a,b,c but not a full breakdown)

If you had federal tax withheld and reported in Box 4 of your Form 1099-INT, it would be included in the amount in Box 25b. on page 2 of Form 1040.  That amount along with other payments and credits is deducted from your total tax to determine the amount  you owe or the amount of your refund.