Please make sure that after entering your wife's W-2 that you put a checkmark by "Worked outside the U.S. - I worked outside the U.S. for an employer that wasn't the U.S. government or its agencies." at the "Do any of these uncommon situations apply to this W-2?" screen.
Then follow these steps to possibly qualify for the Foreign Earned Income Exclusion:
- Login to your
TurboTax Account
- Click "Take
Me To My Return"
- Click "Federal"
from the left side of your screen
- Scroll down to “Less Common Income” and click "Show
more"
- Scroll down to “Foreign Earned Income and Exclusion”
and click “Start”
- TurboTax will walk you through the questions.