Canadian Snowbirds, beware of overstaying now

[andreasduess]

Interesting article - I too thought that Canadians had an automatic six months in the US. Apparently, that's not the case and the rules of information sharing have just been changed.

[mixedpuppy]

I learned all this recently. I'm a dual citizen so already have to deal with taxes in both countries, but my tax residency is a big issue as well as it can substantially change both the amount and complexity of my taxes. The article left out one important point (below) that can affect people who live near the border (most Canadians) and cross often.

182 days over 3 years, 100% of the current year, 1/3rd prior year, 1/6th 2 years back. If you hit that limit, you are resident for tax purposes. The calculation works out to 120 days/year if you max out your time every year.

There is a form you can fill out if you go over this amount to avoid tax residency, discuss with your tax person.

Driving across the border and back within the same day does not count against this time (track it still). TBH I cannot remember if this was for BC MSP and residency or if this was for US tax purposes or both, I'll have to look it up again.

[kamadeca]

Just a couple points of clarification. There are two limits on stays that apply to Canadians:
- The formula mentioned is for tax purposes only. As stated in the article if you stay more than the 120 days you must fill out the 8840 to be exempt from paying US Tax.
- From an immigration standpoint Canadians are allowed to be in the US for 182 days per year (the law is written such that it does not specify what a year is - Calendar, or the past 12 months)

[mixedpuppy]

Originally Posted by kamadeca

- From an immigration standpoint Canadians are allowed to be in the US for 182 days per year (the law is written such that it does not specify what a year is - Calendar, or the past 12 months)

That will vary from province to province and it's the time out of province, not just to the US. For BC, you can be out of province up to 6 months, 7 months so long as the 7th is vacation only. Beyond that you lose residency (including health care, etc). IIRC there was one or two provinces that limit it to 5 months, but I was focused on BC. This can complicate travel even further; e.g. you travel to other areas of Canada, or anywhere else in the world, for a couple months out of the year, then to the US for a few months, you have to account for that total time out of BC.

[kamadeca]

I was referring to the US immigration laws when I spoke about the 182 days. As you mention the amount of time you can spend out of your province varies. Saskatchewan just increased the time from 6 months to 7 months on January 1st.