If I selected pay out of refund, why am I receiving a bill from TurboTax that I can not pay at this time plus I did not use the TurboTax live version at all ?

Received bill from turboTax stating I owe 174.99. Did not use the live version of TurboTax I making way under $34,000 and receive EITC and I still have not received my return. The IRS sent me a ID Verify letter plus I just received another letter.

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You are not showing in the LIVE product; you appear to be in TurboTax Deluxe (not Live). Maybe what you are seeing is for another account/different User ID. If you are receiving notices from the IRS, then you probably have already filed. It is very important to follow the instructions on your IRS notice/letter. Tips for Handling Identity Verification Requests From the IRS