I am a us citizen and my husband is a resisdent with a social security number. My question is when I fill out my taxes do I need to add his income into wages manually as it is coming up a negative number since we are using the foreign exclusion. He lived all year in a foreign country so he has physical presence there. I don't have a w2 for him as they don't do that there. I do have a statement from his company of what his wages were. I just don't think it looks right when his income makes our combined income less that what I made so I don't think it is right.

By claiming earned income exemption, your income can not become negative. Maximum credit is maximum foreign income added in total income. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

Yes I understand that but in my tax program it is deduting his income from mine so I'm wondering why?

A positive number should show up on line 7 and a negative number should show up on line 21 (from Form 2555).

For the official IRS discussion of the exclusion see Foreign Earned Income Exclusion