I have a similar issue on our 2019 OR-40N nonresident return, and agree with you ... Turbotax doesn't handle this correctly. The OR instructions for Form ASC-NP, for part-year or nonresidents of OR, say: "Note: You can only subtract amounts that are included in your Oregon income. Amounts that aren’t included in your Oregon income can’t be subtracted."
In our case, we have the problem with Code 315 Interest on U.S. bonds. I get that interest on U.S. bonds is taxed by Fed, but not Oregon, fine. But we, as nonresidents, didn't receive the interest as Oregon-source income, so, properly, we didn't include it on our Form 40N line 8(S) as Oregon-source income. Since we did not include it there, the instructions are clear that it should NOT be a subtraction on Form ASC-NP. Yet, the Turbotax program includes it as a Code 315 subtraction from the Fed column, with a 0 in the Oregon column. This does not seem right, and the only way I have found to correct it is to override the program's entry in the Code 15 line of the "Other Subtractions" form, which I dislike doing.
Appreciate any comments / corrections.
