How to take a foreign tax credit on Oregon state tax return

I am an Oregon resident and I am receiving retirement income from Canada. I was able to use approx $7800 of available $11,200 foreign taxes as a federal tax credit so I have a carey forward on Federal return. Is there a way to leverage some of this carry forward to reduce my Oregon taxes. Is there a specific subtraction code that would allow me to use some of this carry forward. I read something about being able to use up to $3000 for married filing jointly but not sure exactly the process. Any insight would be appreciated

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2 Best answers

Expert Alumni

Mar 2, 2025 6:34:27 AM

There isn't a foreign tax credit in Oregon, however married couples are allowed to decrease taxable income by up to $3,000 for foreign taxes paid (see page 72 Publication OR-17).

Here is how you can enter your Oregon deduction:

Navigate to the Oregon section of TurboTax (State Taxes > Your State Returns > Oregon)
Continue through the interview until you arrive at Here's the income that Oregon handles differently
Select start or revisit Other Subtractions
Answer yes to the question on the next page Do You Have Subtractions from Federal Income?
On the next page, you can utilize the box Foreign Income Tax to make the necessary subtraction on your tax return

Level 2

Mar 2, 2025 10:08:22 AM

Thank you Mindy. This is perfect. I was able to deduct my Federal Tax Credits under Code 340, but I missed the additional $3000 deduction on Code 311. Will have to wait for it to be processed and submit a revision.