It depends. If your foreign wages were not earned in one of the US possessions, then do not make an entry in state wage section of your W-2.
Once you enter your W-2 income in the Wage & Income section and you go the the Foreign Earned Income Exclusion. Use the link below to get started.
TurboTax will ask you: Was Your Foreign Income Reported on a W-2, Ready? Click on No, I'll keep working on the foreign income exclusion.