How can I bypass an error message which says "You have a financial account in a foreign country." and forces to upgrade to TurboTax Deluxe? This is not applicable.

Follow these steps:

1. Go back to the federal income section, 
2. scroll to the bottom 
3.  select done with income. 
4. The next question should ask about assets in a foreign country. There are a series of questions before moving to deductions. Go through them.