How to enter foreign spouse tax income and taxes

[superduper]

How do I enter, please provide step by step for turbo tax download version. I have a foreign spouse. Where do I enter her income, and her taxes she paid to Canada. Thank you very much!!!

[SundayInSalem]

Enter your spouse’s Canadian income in Foreign Earned Income and Exclusion and tax paid to Canada in Foreign Tax Credit.

I. Foreign Earned Income and Exclusion

1. Type foreign income in Search in the top right
2. Select Jump to foreign income

Do I need to report foreign income?

II. Foreign Tax Credit

1. Type foreign tax credit in Search in the top right
2. Select Jump to foreign tax credit

Where do I enter the foreign tax credit (Form 1116) or deduction?

[superduper]

What should i enter if it asks to try and exclude? Does this apply to my case? 

"Next, we'll make sure we're reporting the income correctly for each spouse", and determine if the income qualifies to be excluded from U.S. tax"

[SundayInSalem]

It depends on where your spouse lives and what her status is.

If you are U.S. citizen or resident married to a non-resident, you can elect to file together and treat your spouse as a U.S. resident for tax purposes. See: Nonresident Spouse

If you choose to do so, and your spouse lives in Canada, you may be able to claim the foreign earned income exclusion. Your spouse will need an ITIN number.

Who Needs an ITIN or Individual Tax Identification Number?

[superduper]

But will I be able to claim foreign income deduction for my scenario, "it says may", but does our situation qualify. 
I'm a USA Citizen that lives in USA
She's a canadian PR that has never visited USA. she works for a canadian company. 

[SundayInSalem]

You will be able to claim a foreign tax credit or deduction if you include her income on a joint return.

If she lives and works in Canada it may be more beneficial for you to file separate. As a nonresident she would not have any US tax obligation and would not have to file a US tax return, unless you have joint investments (generally dividends).

Nonresident Aliens - Source of Income

[superduper]

I live in the USA, with USA Income. My spouse has never been to USA and is not a US resident, she has Canadian income. But we will be filing joint return per https://www.irs.gov/individuals/international-taxpayers/nonresident-spouse. 
Per the IRS non-resident spouse election, it does state, "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."

Can we claim a credit against the tax that she paid, using form 1116? 

Or should we be doing an exclusion per form 2555?

It seems from the instructions on form 2555, they do have lots of mentions for non-resident spouse and possibly easier application? 

I do get a better tax treatment using form 1116, so asking. 

[SundayInSalem]

You can claim a foreign earned income exclusion and/or a foreign tax credit or deduction, but not both on the same income.

IRS says:

You can't take a credit or deduction for foreign income taxes paid or accrued on income that is excluded under either of the exclusions. If all of your foreign earned income is excluded, you can't claim a credit or deduction for the foreign taxes paid or accrued on that income.

If only part of your income is excluded, you can't claim a credit or deduction for the foreign taxes allocable to the excluded income.

Once you choose to claim the exclusion(s), that choice remains in effect for that year and all future years unless it is revoked. To revoke your choice, you must attach a statement to your return for the first year you don't wish to claim the exclusion(s). If you revoke your choice, you can't claim the exclusion(s) for your next 5 tax years without the approval of the IRS. See Pub. 54 for more information.

2021 Instructions for Form 2555