@Mike414 , having gone through your post and the very correct reply from @Critter-3 , I would still like to draw attention to two ( perhaps minor ) points:
1. Two spouses filing joint, both having a tax home abroad and both having foreign earned income ( wages and/or self-employment ), can each exclude up to the max amount allowed for the year. Each will file one form 2555 and it is max of the excludable per form --- i.e. each can exclude a max amount, i.e. no co-mingle or one using the other's unused portion of FEIE.
2. The non-excluded amounts however, on a joint return is treated as joint income --- that is the total world income ( of the two spouses) is added to compute US taxes, then the taxes on excluded portion is subtracted, then tax on un-excluded portion is ratiometrically ( ratio of foreign income to world income) allowable for the year--- TurboTax computes this for you { even though I disagree with the way it is done because it is biased towards the IRS and not the taxpayer ) . Hope I have not confused the situation more
pk
