You are forgetting to include the extra refund processing fee of $40 ($45 in CA) to use the option to pay for your fees from your federal refund. If your software fees are $147---add at least $40 to that. Sorry---your refund is not enough to use refund processing. You will need to pay using a debit or credit card.
It sounds like you're encountering an issue with TurboTax's "Pay With My Refund" option. Here are a few reasons why you might be seeing this message:
Refund Processing Fee: TurboTax charges an additional fee for using the "Pay With My Refund" option. This fee is typically around $40 ($45 in California). Additionally, the "Pay With My Refund" option requires that the payment comes from your federal refund, not your state refund. Your federal refund must cover both the TurboTax fees and this additional processing fee.
If your total federal and state refund amount is $163 and your TurboTax fees are $147, the federal refund might not be enough to cover the additional preparation and processing fees.