Disclaimer: I am not a tax accountant, nor do I play one on TV.

If you are both US citizens or resident aliens, your income is taxable in the US regardless of where or how it is earned (expat vs. local contract). From what I have been told as I work on my US taxes is the the first 85,000 USD you earn outside the US are not subject to US taxes, everything above that is taxable.

Again, you should probably work with a tax accountant to make sure you don't over/under pay.

Good luck!