Canada/US Income Tax questions

quovadis13

I am a Canadian that is commuting into and out of the US everyday where I am employed. When we get to tax time, I get a little confused as to how to properly take care of everything so that I don't end up getting taxed twice. Is anyone else here in a similar situation and knows how to deal with both countries tax returns?? I believe I have to declare my US income on my Canadian tax return, and I have a 1040NR filled out also for the US return. As far as I can tell there should be a form I can fill out to claim a tax credit on my US return for the tax I have to pay in Canada, but trying to sort through the US-Canada tax treaty is proving to be very dry and Google hasn't really gotten me anywhere. If anyone has any advice for me, I would greatly appreciate it. I don't think I am in that unique of a situation and I feel that there should be a simple solution here.

Also, I got married last year and I would like to claim my wife as an exemption on my US return. She worked in Canada last year and earned only Canadian income. Is this something that I need to declare on the US return as well?? I know I will need to get her an ITIN and I believe I have the correct form to obtain one for her (W-7).

Thanks!

Ruckus

I'd recommend contacting an accountant familiar with tax law from both sides of the border.

adytum

W7 is the right form to apply for an ITIN.

This is a complicated situation and you should probably consult a tax professional.