Because you pass the substantial presence test, you are a "resident alien" for US tax purposes.
If you elect to have her treated as a resident alien (attaching a statement, etc.)
- You must file jointly this year (the first year you make the election)
- Both of you are taxed on worldwide income
You would report her Canadian income and she will be taxed on this income for US purposes but you can claim a "foreign income tax" deduction or "foreign income tax credit" for her income.
For more information about claiming foreign tax deduction vs foreign tax credit:
https://ttlc.intuit.com/questions/1901623-where-do-i-enter-the-foreign-tax-credit-form-1116-or-deduc...
https://ttlc.intuit.com/questions/2566703-what-qualifies-for-the-foreign-tax-credit
