Yes, TurboTax can prepare returns for US citizens that need to file returns with Foreign Tax Credit (Form 1116), foreign earned income exclusion (Form 2555), etc.
If you use online TurboTax, you will need Deluxe Edition or higher to prepare those items. Online Editions have other form limitations. Online Deluxe cannot prepare Schedule D,E,F, C with expenses, or enter K-1. Online Premier cannot handle Schedule F or C with expenses.
In the online editions, a state return (if applicable) has an extra preparation fee.
All of the desktop editions (CD/download) can handle all the forms. The desktop editions differ mainly in the amount of help and guidance, and whether or not a state program is included. Desktop editions can prepare multiple Federal returns with 5 free Federal efiles. There is an efile fee for state returns (except free for New York state.)
