Hi, I owe state taxes this year and instead of it giving me an option to set up a payment plan it is taking from my federal return. Why is that?

What you are seeing the Tax Home webpage is just the Net of the refund and the taxes owed.

Current year Taxes owed can never be paid from a current year Tax Refund.

You still have to pay the state taxes owed based on how you chose to pay those taxes in the File section of the program.

You may be looking at a total of your federal and state refunds combined.   But you can't pay your state tax bill with your federal refund.   An IRS payment plan can only be set up if you owe federal taxes.   What state do you owe?   Check your state's Dept of Revenue to see all of your payment options.   State returns are handled separately from federal returns, and not all states have the same payment options.