If you are owed a refund on your Federal return, you can choose to have your TurboTax fee, but not the state income tax, withheld from your Federal refund.
State income taxes cannot be deducted from the Federal refund. The IRS and the state taxing agencies are not connected and TurboTax can't move funds between them.
You will still get the full federal refund minus any fees you had deducted. Turbo Tax displays a screen at the end showing the net amount of federal and state taxes combined, but it is just for your own info. You do still have to pay the state yourself separately. Please see this TurboTax help article for more information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"