Real Estate Law
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I'm sorry to hear about your situation. It seems like it is an expensive thing that the landlord is doing. In some states like CA, the carpet has to be replaced by law every three years. If it is longer than 3 years, then the tenant is not responsible. However, according to a reputable source, "Washington State law does not set out any specific timeframes for landlords to replace carpet or repaint the walls." Thus, it is legal to charge you for the carpet. However, this appears to be a violation of the implied covenant (promise) of good faith and fair dealing. Under the Uniform Commercial Code Section 1-304, every contract comes with implied promises from both parties that they are going to be acting fairly toward one another. The failure of one party to act fairly toward the other can result in a breach of contract. You could basically argue that other landlords would not charge that amount and there must be a more reasonable amount to which you could come to in good faith to meet the obligation under the Code.
To facilitate your situation, there’s a site that I’ve used in the past where you can find a good template for advising of a breach of contract (click here). It's a bit easier (and cheaper) than going through litigation and I have seen it be effective in the past. If you send this letter and they do not respond, then you may want to consider bringing a lawsuit after that because it will be clear they will not be willing to settle the issue.
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