Since your 2008 income was derived from two countries, you need three things.
First, consult the H.R. department of the Canadian university, and get IN WRITING the answer to your withholding question, which is "What national Canadian taxes and what other (if any) local Canadian taxes, and what other (if any) withholding was withheld from my income at X University during 2008?" You need this information documented.
Second, if you received interest or dividents from any Canadian source, such as that bank account you have in Canada which receives your university paycheck, you must also have documentation of that interest.
Third, when you gather all that documentation -- and now that it's after Jan. 31 and you have presumably received all your documentation for 2008 income, interest and dividends earned within the U.S. -- take your documents plus your 2007 1040 to a CPA who is knowledgeable about Canadian income sources for U.S. citizens and residents, and paying Canadian taxes. Since you're in NYS, there are a lot of such CPAs. You can find that specialization in the yellow pages under Accountants -- or you can walk into an H&R Block office near you. They will be able to help you, including filing both your U.S. return and forms and, if necessary, your Canadian return.
TurboTax and similar softwares won't do this work for you, so don't put yourself in the position of "deceiving" the IRS, or short-changing yourself, by using software that isn't up to the job. Although I have worked with high-end CPA firms, I have also used H&R Block myself and have found them to be fully knowledgeable and capable, for a very low price, whcih you can use as a deduction on your 2009 1040. Nice how that works, isn't it?
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