What?! ALL of the income received in 2017 has to be reported to the IRS both by you and by the employer. You cannot change what the W-2 says to add that income, or your tax return will not match what the employer reported to the IRS for your husband's income. Claiming "exempt" (which was a mistake) only would mean not withholding tax for that income---not that it was "tax free" income that does not have to be reported. What does the employer say about how they will report the wages paid for those 3 months?
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
