Form 1116 - How do you combine your joint income on the form?

Spending a lovely sunny day inside doing our taxes (yes I have put it off until the last minute).  Now that my husband has his green card and a SS#, I know I have to fill out Form 2555 (one for each of us) and the usual 1040 filed jointly but I am not sure how to "combine "our general limitation income" on Form 1116 because there is only one space for one name and one SS#? Do I just put down my name/SS# and then combine our salaries and taxes paid? Would it be easier for me to do a married filing separately Form 1040 for each of us and do form 2555 for each AND do a form 1116 for each of us?

That brings up another question....if I were to do a married filing separately 1040 I don't believe he wouldn't even need a Form 1116 of his own because his income is not above the $80k mark when converting.

Any advise would be greatly appreciated...thanks!

Jules - this is where life gets complicated!

On one hand he is saying to the immigration folks that he is a permanent resident of the United States.  On the assumption that you are planning on arguing for tax purposes that he is physically present outside of the United States for at least 330 days out of 365 he will be saying to the tax guys that he is basically not living in America.  Some cautious immigration attorneys would suggest therefore that a green card holder who does not want his green card pulled should not claim the foreign earned income exclusion at all.

I trust he is clear from an immigration perspective as to the validity of the green card - in which case there are some general guidelines to follow:
1. He does not qualify under the bona fide residence test (because this is only available to US citizens).
2. He should take advice from an immigration attorney if there is any doubt about the green card.
3. He should make sure he has a valid reentry permit.
4. He should make sure he declares all worldwide income, including things that are tax-free here such as ISAs, National Savings and Premium Bond and Lottery prizes.

To get back to the 1116, yes you do one form - combining everything in the general basket; plus a separate form for AMT (and a separate set if you have passive basket income).

Guya, thanks for your advise! See my comments below.

Jules - this is where life gets complicated!

On one hand he is saying to the immigration folks that he is a permanent resident of the United States.  On the assumption that you are planning on arguing for tax purposes that he is physically present outside of the United States for at least 330 days out of 365 he will be saying to the tax guys that he is basically not living in America.  Some cautious immigration attorneys would suggest therefore that a green card holder who does not want his green card pulled should not claim the foreign earned income exclusion at all. 

Not sure what you mean about not being able to claim or use the foreign earned income exclusion, what would the other option be? Confused because just like me he is paying UK taxes. Is there a different form other than 2555 I should use for him?

I trust he is clear from an immigration perspective as to the validity of the green card - in which case there are some general guidelines to follow:
1. He does not qualify under the bona fide residence test (because this is only available to US citizens).
2. He should take advice from an immigration attorney if there is any doubt about the green card.
3. He should make sure he has a valid reentry permit.
4. He should make sure he declares all worldwide income, including things that are tax-free here such as ISAs, National Savings and Premium Bond and Lottery prizes.

Response to #2 - His green card is valid. #3 - Why would he need a reenty permit?

To get back to the 1116, yes you do one form - combining everything in the general basket; plus a separate form for AMT (and a separate set if you have passive basket income).

So if I do one form then I just put my name and SS# and combine everything for us (there is not a place for a 2nd person's name and SS#. Am I correct?

As the sunny day ends - here are the answers!

1. If you don't claim to exclude his income you must tax it, but can still claim credit for UK tax on the 1116 - so there is still zero US tax due.

2. Please see the following link.  It is very helpful in terms of what must be done to keep the green card valid.  Don't forget that just because he has it in his passport, it does NOT mean it is valid for immigration purposes unless he complies with the rules: 
http://www.uscis.gov/graphics/howdoi/PermRes.htm

3. Yup - you just write the first named filer's SSN on it (combining all of the entries).  You can write one or both names on the name section, and they'll still process the form.

Enjoy!

A big thanks guya!    At the end of the day...given the complexities and all of the forms, we just want to make sure we are doing things right.