I am a CDN who moved into a home in the US on Dec 23, 2008. I transferred down on a L1 visa through a relo by my employer. I did start working on Oct 15, 2008 and made roughly $10,700 in US income for 2008. My wife moved with me on the same date, but didn't start employment in the US until Jan 2009. We have a home in Canada which is being sold as I write this. We still have our CDN investments and bank accountants. We have 3 children under 18 yrs of age.

We are very confused on what to do with our taxes and how to file. Obviously we need to file a CDN return for 2008, but do either of us need to file a US return? What about 2009, what is our tax status in Canada and are there any suggestions to ensure we are paying the least tax possible?

Any help would be appreciated.

When did you enter the U.S.
Where did you live during the period you earned $10,700 in US income?

You should file as a non-resident alien, filing Form 1040NR. Because you are Canadian, you can claim your wife and children as dependents, which will cause your deductions to exceed your $10,700 income.

You will need to submit Forms W-7 with a notarized photocopy of your wife's and children's passports to get ITINs for them. These will be needed for future returns as well.

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