Can a person on a J1 visa in their 3rd year of US stay file tax using turbo tax?

Yes, you could use TurboTax if you qualify as a Resident Alien.  In general, an alien in J-1 status (hereafter referred to as a “J-1 alien”) will be treated as a U.S. resident for federal income tax purposes if he or she meets the Substantial Presence Test. The test is applied on a calendar year-by-calendar year basis (January 1 – December 31).  You are not required to be here 5 years.

If a J-1 alien meets the Substantial Presence Test, he or she should be aware of the rules for determining the official starting and ending date of their period of residency in the United States. For details on these rules, refer to Residency Starting and Ending Dates.