You designate your W-2 with foreign income as such on the screen "Do any of these uncommon situations apply to this W-2?". That screen comes after you enter your W-2 information, just continue through the program until you get that interview question.
Once there, you have choices for "Worked outside the U.S." and "Foreign or international organizations". Select the one that applies to your situation. Once you make the correct selection, TurboTax will recognize that the W-2 you entered has foreign income.
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