How do I use turbo tax to report blocked foreign income?

Recommend you use TurboTax CD/Download version. 

This will allow you to prepare the File version of your Federal and state returns (if applicable) and the additional Informational return for the blocked foreign income. 

You have the option to include the blocked income and also the blocked tax with your current year filing or defer it via the informational return. 

You do not have the option to claim a foreign tax credit if your are not including the blocked income in your income on this year's return. 

The Informational return will only report the blocked income.   

The Informational return is labelled "Report of Deferrable Foreign Income, pursuant to Rev. Rul. 74-351" 

You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked.

You must also state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. 

You must report your income on your information return using the foreign currency in which you received that income. If you have blocked income from more than one foreign country, include a separate information return for each country.

Publication 54 (2020), Tax Guide for U.S. Citizens and Resident Aliens Abroad (See Blocked Income)