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Yes - you do have to report the foreign income and you may be able to exclude it from income tax if your husband otherwise qualifies. The foreign earned income exclusion is $101,300 for 2016 and your husband must be physically present in a foreign country or countries for at least 330 full days during the 12-month period. When going via interview in Turbo Tax, you'll be asked about you husband's 12 month period -when it began and when it ended.   Please use steps below to report income and go through the qualification questions for foreign income exclusion:

1. Federal Taxes
2. Select Wages and Income 
3. Scroll down to Less Common Income
4. Select Foreign Income and Exclusion - Answer “Yes” to “Did you make any money outside the United States?” and follow the interview questions. You will be asked to enter income from a U.S company, a foreign company, self-employment income, housing allowance, income from a Form W-2, 1099-MISC, schedule K-1 from a business or simply cash income - check the box A statement from my foreign employer (could be cash). Please continue through the interview to see if you qualify for the foreign income exclusion.

If you have paid any foreign tax on the income, please enter it in the Deductions & Credits section; you may qualify for the foreign tax credit on the foreign income that was not excluded from tax:

1. Federal Taxes
2. Deductions & Credits
3. Scroll down to Estimates and Other Taxes Paid, select Foreign Taxes