Get your taxes done using TurboTax

You need  to report the income as wages and not self-employment income.  Here is a IRS video on this issue. US Taxation of Employees of Foreign Governments & International Organizations

There are a number of references to green card holders in this video.

Employees of a Foreign Government or International Organization How to report Compensation

I think you should enter her wages as foreign income.  It is a way to get her wages reported as wages on the return.    

To enter your foreign wages in TurboTax, you need to:  

1. Enter foreign earned income in the search bar at the top of the screen and click the Jump to link  

2. On the first screen it will ask you what form your foreign income was reported on, you need to check statement from my foreign employer (converted to USD)  

3. On the next screen enter your Foreign wages  

4. Continue through the screens answering the questions  

5. Then you will get the screen,Would you like to Try and Exclude Your Foreign Earned Income,   

6. Enter no  

7. The program will tell you that form 2555 will be deleted, say  OK 

Now your foreign wages have been entered into the software.    

Let us know if you have further questions.