Your statement contradicts Oregon Pub 17. The only correct value for Part C, line 1 is $8,250. Please read Oregon Pub 17 where it states "Enter $8,250 ($4,125 if your filing status is married filing separately)." There can be no other interpretation of this, other than to enter either $8,250 (or $4,125).
TurboTax uses a different value, and is therefore incorrect.
If one were to use the incorrect value (as suggested by TurboTax), then it would be impossible for anybody with Federal AGI above $125,000 Single ($250,000 Married) to claim any Foreign Income Tax subtraction because Line 1 and Line 2 would be equal, so Line 3 and finally Line 5 would be 0.
However, as per 2024 OR-17, "Your foreign tax subtraction plus the subtraction for your current federal tax liability plus any additional federal tax paid for a prior year can’t be more than $8,250 ($4,125 if your filing status is married filing separately)."
If the Federal Tax Liability is less than $8,250 because of the AGI phase out, e.g., $6600, then one is entitled to claim a subtraction up to the difference of $8,250 - $6,600 = $1,650 in Foreign Income Tax.
I implore you, please read the publication, compute the correct value as per the instructions, and compare that with the result from TurboTax. You will observe the error.
This error in TurboTax can cost Oregon Tax payers up to $300 every year if unable to claim the Foreign Income Tax subtraction.
