Tax-services-toronto.com | Snowbirds | Cross-Border Implications | 416-626-2727 <br /> <br />Snowbird Taxes <br />Hello, this is Chris from Tax Services Toronto.com. <br />Canadian retirees who go south for the winter need to be aware of the Canadian and U.S. tax implications of doing so. <br />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. <br />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. <br />It will help both agencies to implement some new rules and strictly enforce the old rules. <br />In addition to the 183 days rule, there is also a substantial presence test which is detailed on our website. <br />To counter this, you can file a Form 8840 – “Closer Connection Exception Statement for Aliens” which signifies your closer connection to another country. <br />This process can be a very complicated area and will require the assistance of a professional who is familiar with cross-border issues. <br />For more information, please phone us at 416-626-2727 or email us at taxes@garybooth.com. Thank you and have a nice day.
