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You would report that income in the Wages and Income section of TurboTax, then Less Common Income, then Foreign Earned Income and Exclusion. On the screen in that section that says What Form(s) Was Foreign Income Reported On? check the box that says A statement from my foreign employer (could be cash). Work through that section until you see an option to enter the income.
I don't think you can report foreign earned income in TurboTax Free Edition. When you start to enter it, TurboTax will probably tell you that you have to upgrade to a paid version.
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