@taxing times , thank you for your reply ---- the problem as I see it is (a) there is no need for two different 1116s ; Self-employment earning and employment earnings are both active income and come under the general category. Put all on the same 1116 .; (b) make sure that you have included the income taxes ( wages and self-employment/business income ) totaled on 1116; (c) also the schedule C for your wife should produce a self-employment tax Schedule-SE ( at 15.3% of most of the net income ) --- you need to make sure that this is applicable in your country of residence --- many have Totalization agreement with the USA and only country of residence or your home country charges FICA/SECA or equivalent.
Does this now make sense ? Do you need more help ?
pk
