Hi, I am a US citizen who married a non-resident alien last November. I will be filing form 1040 as married filing jointly. My husband will include form W-7 for an ITN. Do I need to include his income even though it does not come from the US and, if so, how do I go about doing that? He is self-employed and pays taxes to his country - who's tax year begins July 1 and ends June 30. Thanks for any assistance.

Yes, you must both report worldwide income. On self employed income, you will also pay SE tax in US.
You will claim also claim foreign income exclusion Form 2555 or foreign tax credit Form 1116 for taxes paid in foreign country. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)