[njdude31]

I was in the US for 10 years till end of 2006. Then I moved to Canada and been here since then. During my stay in the US I had invested in the IRAs.
In mid 2009, I sold the IRAs. They deducted the 10% penalty on it.

For me it was 12k
for my wife it was 13k

I have a few Qs related to that

. Do I have to file a 1040 NR and include these sales and pay taxes to US . I'm looking at the 1040NR and I believe I have to use the total amount in line 16a and 16b and use the 10% penalty in line 55. I guess I have to file separate returns for 1040NR.

Am I correct in saying that in the form this is what it is going to be

For me : 16a and 16b has 12k. Line 39 - 3650 (exemptions)
tax line 41 = 12 - 3650 - from tax table look for 8350 . So tax for 41 = 839. 10% has already been deducted. So I sent them a check for $849.

similar calcualation for my wife .

Is this all correct ?
.
Can I then use the tax paid in the US as a credit on my canadian taxes ?

Thanks for all your help.

[MukatA]

Why the 401(k) administrator has deducted only 10% from your withdrawal amount? They should have withheld more tax unless it is because of tax treaty between U.S. and Canada. If yes, you may not be required to file tax return.
Sorry, my knowledge is limited.