If you have been living in Israel for many years , you surely qualify for Physical Presence Test and thereby be eligible for excluding your Foreign Earned Income ( I think for 2018 it was $103,900 ).. To do this in TurboTax, under personal tab, select Income, then select "I will choose what I work on", then from the list of income types , near the bottom of the screen you should "other less common.... ", with that group there is "Foreign Earned Income and Exclusion" -- select "start or edit " --- that should walk you through preparing form 2555 ( Physical Presence Test ) and exclusion of foreign earned income. So on your form 1040 Schedule-1 , you should see both your total income and on line 21 a negative amount corresponding to the excluded foreign earned income.
Any income that is not so excluded and taxed by the USA and Israel, will open form 1116 for foreign tax credit.
Does this make sense? Is this how you have done this before ? Did you at anytiem tell IRS that you do not want to foreign earned income exclusion ?
Any more help, please say so in comments
