US Taxes, worked only 3 months in UK

I worked in the UK 3 months in 2005.  I do not qualify for the bona fide residence or physical presense tests.  I am unsure how to file my US tax return.  Here is an example of my numbers:

UK wages: $10000
UK income tax: $1000
US wages: $15000
US income tax: $1500

I am entering the UK wages and UK income tax on Form 1116.  But I am confused about whether I am suppose to include my UK wages with my other income on Line 7.  My inclination is to do this, but my calculated refund is substantially less (even with the Foreign Tax Credit) as compared to calculating my refund having not reported any of my UK earnings at all. So it seems like I am making a mistake.  That is, if my UK wages are taxed at an equal to higher rate than US income tax, how can reporting my UK wages produce a lower refund?  I am using TurboTaxOnline, here are some example results:

Ignoring UK wages and income tax: refund = $1000
Doing Form 1116 and including UK wages on Line 7: refund = $500
Doing Form 1116 and NOT including UK wages on Line 7: refund = $1500

TurboTaxOnline does not indicate an error in any case. Any advice or info would be appreciated.  Thanks.

Yes, your UK wages are included on Line 7.  Of course your refund is less, as this addtional income puts you in a higher tax bracket.  You get full tax credit for the UK portion, but your overall tax is still higher.  This is not a mistake or error.