@Edgeman Whereas I agree with your frustration about not being able to enter foreign wages directly as in entering a W-2, but there is some reasoning for the way foreign wages are entered.
(a) you have to allow for wage earners whom earn US wages for part of the year and earn foreign wages for the rest of the year -- i.e. you have both a W-2 ( with federal, State and FICA collected ) and a foreign wage statement showing foreign wages , foreign taxes and foreign Social Security / Medicare equivalent. A os have to allow for differences in the rates of all of these types of taxes and/or additional categories of taxes/ contributions.
(b) You also have to allow for the wage earner whom moves from one foreign location to another and also the variations of taxes therewith.
)c) Then there is the case of self-employed individuals earning in one or more foreign locations.
Therefore IRS has taken the position to decouple the US wages report ( W-2) and the foreign wages / earnings statement ( generally reported on schedule-C ) and merge the foreign "active" earnings under one heading. The nearest equivalent reporting characteristics happens to Schedule-C because there is withholding of taxes ( US) and no SECA ( i.e. Social Security and Medicare contribution with no employer participation). It also allows for Schedule-SE for SECA or immunity from this through totalization agreement. Additionally it allows for earned foreign income exclusion ( directly/ automatically through use of form 2555 ) or foreign tax credit ( where you need to enter the foreign income -- unexcluded portion/total depending on your choice).
TurboTax is only implementing the IRS process.
Does this answer your question? If you are satisfied please "accept" or tell me I c an earn that satisfaction.
pk
