Filing Jointly with Non Resident Spouse (Lose Foreign Earned Income Exclusion?)

[AaronESR]

My spouse (non US citizen) and I live overseas and were married in 2023.  In general, my income has previously fallen almost entirely under the Foreign Earned Income exclusion.  Last year, she worked for 3 weeks in the US under a J-1 visa.  I am expecting that this income should be excludable under a tax treaty.

For our 2023 filing: My understanding is that we are able to choose to file jointly, and if we do so:
We are treated, for federal income tax purposes, as U.S residents for all tax years that the choice is in effect.

"Generally, neither you nor your spouse can claim tax treaty benefits as a resident of a foreign country for a tax year for which the choice is in effect. However, the exception to the saving clause of a tax treaty might allow a tax treaty benefit on certain specified income."

Questions:

1. Does both of us being considered US residents for this tax filing mean that we no longer qualify to claim the Foreign Earned Income exclusion?  (Or does both of us being considered a US resident just mean that we both have to report world-wide earned income, and not just me as a US citizen?)
2. Does the statement from the IRS site (which I listed above) regarding tax treaty benefits mean that this J-1 income would no longer be excluded under the tax treaty?

Thanks

[DaveF1006]

The money your spouse earns in the US is not eligible for the Foreign income Tax Exclusion (FEIE) because it is income earned on US soil. Your income, if earned on foreign soil can be excluded but not her US-based income. 

if she earns income in the foreign country, then he income can be considered to be excluded under the FEIE.