Canuck Filing U.S. Taxes - File as "Single" or "Married"?

Let me start by saying this site is a wonderful resource. Thanks so much!

I am a Canadian living in Canada. I am married (to a Canadian living and working in Canada) and have one child. I am in the process of filing my 2009 taxes. I worked as an employee from Feb 2009 through July 2009 for a engineering consulting firm located in Massachusetts. I worked for the consulting firm from my Canadian office and only traveled to the U.S. on 10 occasion during that time period on a TN Visa. My total U.S. income for the year was about $17,800 before taxes, etc. For the remaining months of 2009 (Jan and Aug through Dec) I worked for a Canadian consulting firm as an employee.

My plan is to file my Canadian T1 as normal and claim my U.S income ($17,800) as foreign income. In the U.S. my plan was to file Federal taxes as a non-resident alien using form 1040-NR-EZ. In Massachusetts I planned on doing the exact same using Form 1-NR/PY. My approach was to file as "single" (I was told by a co-worker not to file as "married") without dependents. This would avoid me obtaining an ITIN for my wife and daughter.

Is this approach correct? Any help would be greatly appreciated. I truly am confused, even after reading several of the 60+ page "guides" the IRS offers on their website. Thanks in advance!

You have to file as married, but you do not have to claim any dependants.

You would write NRA instead of applying for ITIN (although applying fpr ITIN isnot that complicated.

What you need to be careful of is that without reducing your US taxes you might end up having more US tax than you can clim on your Cdn return (in effect paying more tax than you would if you had worked in canada) when you include your mass tax and fica.

If this is the case, you should be reducing your US tax, first by claiming your spouse and any children.

If even this is not enough, then there is a special way to file for married Cdns, a treaty XXV non-discrimination return, which I have described in detail at forums.serbinski.com

I am a Los Angeles based Attorney and CPA who handles cross-border US-Canadian tax matters. Feel free to reach me through this site if you need assistance with your US and/or Canadian tax filings.

I have a question...

I'm a dual Citizen, been Canadian all my life, just claimed my US citizenship 2 years ago.

I live & am a resident in the USA, my wife is American & my son is American as well as Canadian.

I have residence in Canada and receive healthcare & CCTB benefits. I am a director in my dads company & receive a directors salary. I file taxes every year in Canada. I go back once or twice a year, but for the most part I do not live there, though I maintain residency.

I'm now working full-time in the USA and am planning on filing taxes for the first time. I'm very curious how this all works. Will I need to report my small Canadian income on my USA tax return, and the same for my larger USA income on my Canadian tax return (world income?). Can my son be a dependent on both tax returns?

This is all very new to me & I'd appreciate any information. Even my American & Canadian accountants aren't really sure.....

Due to your dual citizenship you should consult with a tax adviser concerning residential ties for tax purposes, foreign financial reporting obligations, canada-us tax treaty claims, and social security/cpp totalization. Our firm handles cross-border transactional tax matters and we can arrange a consultation.