Get your taxes done using TurboTax

From all the advice I received, it will depend on your wife's residence and tax status for last year for reporting, and the foreign taxes already paid on that amount.

 

I can confirm that when I reported the income in TurboTax, it lowered my return initially - but once I reported the foreign taxes paid on it and received the Foreign Tax Credit, the refund amount bounced back up. So it showed up for this tax year on our return.