That is where I was in TurboTax but it would not let me subtract my foreign tax from my income on my Oregon return. I was not able to subtract any of my federal tax due to my income, so I was no where near the 7250 limit. I took a tax credit for my foreign tax on my federal return. TT would not even let me override it and manually enter it as a subtraction. I verified with OR Dept of Revenue that I could tract up to $3K of foreign tax, even though I was not allowed to subtract any of what I paid in federal tax due to my income. If I changed my 1040 to an itemized deduction for Foreign tax, then TT took it as a deduction on my state return. But that was way less money to take it as a deduction instead of a credit on the 1040.
