When you say overseas filer, are you a US Citizen or Non-Resident Alien that has US sourced Income? If you are a Non-Resident Alien that has US Sourced Income, you would need to file a form 1040NR. TurboTax does NOT support the 1040NR, but our partner Sprintax.com does.
If you are a US Citizen living abroad, then deducting this from your taxes that you paid in a foreign country would not affect your US tax deduction as they are two separate taxing entities. This would be similar to states that allow itemized deductions. You can claim the health insurance as a deduction on both your state and your federal returns. So if you are itemizing your return, then even if you took a credit on your foreign return, you would still be able to claim it on your US return as the two have no affect on each other.
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