Hope you can help me with my tax situation.
I've been working for a company in USA for a few years. Now I live in Canada and continue to work for them remotely. They didn't make any changes in payroll and issued me W-2 for entire year income of 2010. In 2010 I was in USA on H1b visa for 1 week only (5 working days).
Should I file 1040NR or 1040?
Should I claim my husband and child? They live in Canada.

You were non resident for 2010 as you did not complete substantial presence test in 2010.
Income you get from US employer is not subject to US taxes except if provided by Canada and US tax treaty.T

Talk to your employer. File Form W-8BEN to report your foreign alien status so that your employer do not withhold any taxes.

Thanks MukatA
W-8BEN will be for next year. I need to figure out what to do with 2010. Will I have problems with H1B if I file as NR? I assume employer filed for me as resident, since they don't track time I spend in office and out of office. Can I still file 1040NR?

Thanks MukatA,

Is there any problem that I use H1B and will file as Non Resident?
I would assume employer files for me as resident, as they don't track the time I spend in office and out. Can I use W-8BEN for 2010 or this is for my employer for next year?