2014 US taxes advice needed

Back story: I am a US citizen and worked all of 2014 in the US. My husband a UK citizen with green card worked a short time in the US and then moved back to the UK for a permanent position. I filed for an extension in April, per advice I received on here, so that I could wait and file once my husband had been in the UK for a year. 

Currently: I am working on getting my taxes filed with increased frustration and need help. When I input just our US information it shows a refund of say $500 (as an example), which is great. The problem comes when I enter my husbands UK earnings. It does subtract out his earnings from total income, but it also drops our refund down to say $25.

Any help and advise is greatly appreciated, so I can finally be done with these for this year. Please ask any questions if you need any clarifications or more information.

Thank you for any and all help.

Are you using the earned income exclusion for hubby's UK income? Try taking a credit for UK tax paid (or possibly accrued in his case) and see if that works in your favor. Also make sure he is not being hit for the ACA *penalty*. I would assume he qualifies for the exclusion, but there is an extra form that must be filed (Form 8965).

This has some interesting points:

https://americansabroad.org/issues/taxation/us-taxes-abroad-dummies/

Others will jump in and provide a LOT more info, based on your answers to any specific questions they may have.

Thank you for the information, it gives me something else to try.

Yes, I have been taking the earned income exclusion. Now I will try to take the credit for his UK tax paid.

From what I have read is that you can either take the earned income exclusion or the tax credit, but not both.  Is this correct?

Correct; except in some rare case that I remember reading, either the FTC or the FEIE.