Commuted daily from Canada to US for over 4 years, until 10/1/06, then all moved to US.
2005 - filed 1040NR and elected treaty provision to be taxed at joint rates, which withstood a vigorous IRS challenge.
After moving, wife started working for State of Michigan. So for 2006, both have W-2 wages.
Both have H1 visa status.
Prior to moving to US, no physical presence in US, as commuted EVERY day.
There is no Canadian income whatsoever.

What form to file? 1040NR doesn't allow for joint US income reporting. Yet if filing two 1040NRs, how to elect treaty provision for taxation @ MFJ?

Shark:

I believed I answered your question via email.

Shark:

I believed I answered your question via email.


Yes, thanks very much. Your choices were very very helpful. See my reply. --Phil

Just read your email; interesting case. You may want to publish it in a tax professional publication.

I must be missing something... isn't there a box on the NR to indicate Married Individual from Canada?

TTE:

Yes, that is how they filed in 2005. I will forward the email to you.