No, you enter your federal credit amount ($5,000) for Schedule CA (540), Part II, Line 16, Column B. Because you took a federal credit, the IRS considers that a "deduction" you've already received for tax purposes. To prevent double-counting this benefit on your California return, you must "subtract" that federal benefit from your CA itemized deductions because TurboTax will transfer the amount from the federal return.
For the Form 540, Line 78 (Total Payments), you need to ADD your calculated $1,000 CA credit to the other payments (like your W-2 withholding) already on that line. In most cases, this would be added as an Estimated Tax Payment, but in this specific case, that would cause a circular problem: TurboTax would add the estimated tax payment (like the credit above) then you would have to re- subtract- this is the best way to get around the TurboTax calculation (and once again, this is an extremely rare case where this would happen).
Please let me know if you need more clarification! @GreenApple123
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