Yes - you can use TurboTax to file your federal tax return as an expatriate living and working outside of the U.S.
American citizens and resident aliens (green card holders) are
subjected to U.S. federal taxation on their income worldwide, wherever earned
(I'm assuming that you are either a U.S. citizen or resident alien -
nonresident aliens are only subject to federal taxation on their U.S.-source
income).
As a U.S. citizen
or resident alien, yes, you do have a requirement to file a U.S. federal income
tax return and to report your income earned abroad. To mitigate the
possibility of double taxation, U.S. tax law permits exclusion, up to certain
limits, of foreign earned income and foreign housing costs, and a foreign tax
credit, to credit against your U.S. federal tax any foreign income taxes which
you paid against the unexcluded income.
TurboTax
supports filing Form 1116, Foreign Tax Credit, to claim credit against your
U.S. federal tax for foreign taxes paid, as well as Form 2555, Foreign
Earned Income, to calculate your foreign earned income exclusion and
foreign housing exclusion or deduction.
The Deluxe,
Premier and Self-Employed versions of TurboTax Online all support
Form 1116 and Form 2555 (not Federal Free), as well as all
versions of TurboTax Desktop, for Windows or Mac.
Please see
the following TurboTax FAQ, "What are Forms 2555 and 2555-EZ used
for?", for instructions on how to enter information in TurboTax about your foreign earned income:
https://ttlc.intuit.com/replies/3301984
To see where
to enter in TurboTax Online foreign income taxes which you paid or
accrued in 2016, for purposes of claiming the Foreign Tax Credit on Form
1116, please see the following TurboTax FAQ, "Where do I enter the foreign
tax credit (Form 1116) or deduction?":
https://ttlc.intuit.com/replies/3302405