I agree that what you stated here is what TurboTax does, and it is the incorrect behavior.
"If the amounts are over these thresholds, then the amounts reported part C line 1 reflect the values that are listed in Table 9 of Oregon Pub 17."
That is not what is supposed to be reported in Part C, line 1. The instructions for "Part C: Foreign income tax subtraction" clearly state, "Enter $8,250 ($4,125 if your filing status is married filing separately)."
Can you please explain why TurboTax is using the incorrect value (the federal tax liability, as you've confirmed), instead of the correct value of $8,250 as stated in the instructions?
