Thank you for using justanswer. You are correct in that you will file as a Non Resident alien
(1040NR or 1040NREZ) under the terms of your J1 visa.
Siince you will be filing
as a Non Resident Alien, you will only report the income
you earned in the US on your 1040NR or 1040NREZ.
The US and Canada do have a tax treaty. Most Non Resident Aliens may claim a personal
exemption only for themselves. See line 13 of
They may not claim any tax exemptions for their spouses or their children (unless the child
was born in the US) this means that as married person filing as a Non Resident Alien, they pay higher taxes than most married US Citizens.
Due to the treaty between the US and Canada, if you are married, and your spouse had no US income, you may claim not only yourself, but your spouse and any children as your dependent
as long as your spouse and children have no US income. Since each exemption is worth $3650 this year, if you are married and have children, this could mean that your taxable income
is reduced by quite a bit. Please see line 13 of Form 1040NR EZ
The treaty also covers Social Security tax
. As a Canadian Citizen, you would only be responsible for paying into the Canadian social security system.
You will still have to complay with the Canadian tax laws
since you will still be considered a Canadian citizen.
Please see below for more indepth information.J-1 visa holders.Publication 519 (2008) U.S. Tax Guide for Aliens
I hope this helps.