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CalgaryFlames · May 22, 2009, 01:34 PM

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.

MukatA · May 23, 2009, 02:07 AM

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

AtlantaTaxExpert · May 23, 2009, 07:10 AM

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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