You can combine the foreign earned income exclusion with the tax credit, just be sure to calculate the reduction in foreign taxes and enter this number into the Foreign Tax Credit section of TurboTax.
That calculation is determined by dividing the exclusion taken by the total foreign sourced income. Then you multiply the tax paid by that factor, giving you the amount to exclude.
As an example, if you have $126,500 of total income and housing exclusion, $190.000 of foreign earned income, and $55,000 of tax paid it would look like this:
126500/190000=.665789
55,000*.665789=36,618 so the reduction in foreign tax would be 36,618 leaving $18,382 of foreign tax that is considered for the foreign tax credit.
Your numbers won't be this, exactly, of course and TurboTax doesn't do that math for you - but there is an area to enter this "reduction in foreign taxes" which is the amount of tax attributed to excluded income.
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