Tax-services-toronto.com | Snowbirds | Cross-Border Implications | 416-626-2727
Snowbird Taxes
Hello, this is Chris from Tax Services Toronto.com.
Canadian retirees who go south for the winter need to be aware of the Canadian and U.S. tax implications of doing so.
If a Canadian spends 183 days or more in the U.S., they can be considered “substantially present in the U.S.” and are subject to U.S. tax laws.
A new tax treaty between the two went into effect during the 2014 tax year that allows them to share information relating to how many days Canadians stay in each country.
It will help both agencies to implement some new rules and strictly enforce the old rules.
In addition to the 183 days rule, there is also a substantial presence test which is detailed on our website.
To counter this, you can file a Form 8840 – “Closer Connection Exception Statement for Aliens” which signifies your closer connection to another country.
This process can be a very complicated area and will require the assistance of a professional who is familiar with cross-border issues.
For more information, please phone us at 416-626-2727 or email us at taxes@garybooth.com. Thank you and have a nice day.
