by axolotl » Tue Jun 30, 2009 1:23 pm
Steve can probably answer this better than anyone, but as a US citizen you are not permitted to fill out the non-resident tax return forms (1040NR) even if you do not reside in the US. You must fill out a 1040, 1040A or 1040EZ (what form you use depends on how much you earn and whether you are itemizing your deductions or taking the standard deduction, and possibly some other factors). Also, my understanding is that US citizens filing tax returns must report their worldwide income not just their US earned income. This means that you must also report what you earn in Canada (and other countries).
W-2 (not W-7) is the form that you usually get from your employer(s) that shows your wages and deductions. This is also what is reported to the IRS.