I am a Canadian working in the US with a TN1

I moved to Nevada for a job July 2006, and still work there now. Do I do my
taxes in canada and us seperately? My earnings for 2006 in Canada were very
low.
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david ingram replies:

You have more than one choice.

1. a) You file a departing Canada tax return including form T1161 and 1243 and 1244 if you left more than $25,000 worth of assets behind.

b)
You file a 1040NR Dual Status Statement for the US and then a 1040 Dual Status Return to report the US income only. The statement is there to separate out any US income you may have received BEFORE you actually went to the US. You can NOT claim the standard deduction on a Dual Status Return You can only use itemized deductions on a Dual Status Return.

2. a) You file Canada as in 1a) above.

b) You file a 1040 tax return reporting your world income for the year including the Canadian income. Then you file US form 1116 to claim a foreign tax credit for the tax, CPP and EI you paid to Canada. This allows you to claim the standard deduction on the US return.

Good luck. Remember that you can always send the returns here by fax, courier snail mail or pdf email.