With TurboTax open select My Info in the left panel. Scroll down to Mailing Address click edit. In the drop down menu for Type of mailing address select Foreign Country.
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I have the same problem. I have done what you said but it does not work and I am stuck in a loop. Please help!
Are you paying the TurboTax account fees with a US credit card with a US billing address? If so, you need to change your mailing address to the same as the billing address. Then enter your credit card payment information. Once the payment has been accepted you can change your mailing address back to the original foreign address. Then go to the File section and you should be able to e-file your tax return.