CND on TN, reporting foreign income on 1040

[lotusland]

I arrived in US on TN 09/2005 to work for USA employer. I am a CND citizen and worked in Canada from 01/2005-08/2005. Only CND income for 2005 is from CND employer. I have been deemed a non-resident of CND as of 09/2005 by the CRA Intl Tax Services.

I have not completed my USA taxes yet, as I filed for an extension. I have nothing to claim, no investments just straight employer paid earnings.

1) Since I am new to the US, do I have to report previous Canadian income on my US tax forms?
2) Is my Canadian income considered foreign income to the IRS? I was in US less than 183 days in 2005?
3) The US tax software I am using says I do not qualify for Foreign Income Exclusion. Can the IRS ding me for money earned before I even entered the US?
4) See previous post for your response on my Canadian tax question.

Any advice here would be temendously helpful.

Thanks.

[nelsona]

You do qualify for FEIE, you need to use treaty. This has been expalined in the past.

[Mark T Serbinski CA CPA]

You need to make an election under IRC 6013(g) or (h), or 7701(b) depending on your marital status. This will enable you to either claim the FEIE or foreign tax credit, rather than filing a dual status return for your year of entry to the U.S.