Deductions & credits

First, please report you wife's foreign income, then visit Foreign Tax Credit section in Deductions and Credits section.

Her income is reported as foreign income as follows:

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).

Then, visit Foreign Tax Credit:

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

NOTE: If I am misunderstanding the nature of your wife's income and, let's say she has investment income, such as interest or dividends... enter the respective income as if she received form 1099-INT or form 1099-DIV, enter the income and foreign tax pad in respective boxes.. THEN go to foreign tax credit section and follow the interview questions