The S-Corp will complete it's own tax return (form 1120 S). The S Corp will include all 1099-MISC forms received in it's name as income.
The S-Corp must designate a "reasonable" amount of it's income as wages. This is required because the IRS wants to make sure that you are reporting a "reasonable" amount as self-employed wages and paying a "reasonable" amount of self-employment tax. What constitutes "reasonable" is a gray area. See
https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Se... for more discussion.
After recording all expenses, and wages, the S-Corp must distribute any remaining income it's shareholders. That is done through a Form K-1.
On your personal income tax return, you will include any wages paid by the S-Corp (either 1099 MISC or W-2) paid to your wife. You will also include the Form K-1 in your tax return.
