Information for Canadian Snowbirds

Proposedlegislation in the U.S. might have severe tax implications for Canadiansnowbirds going south of the border for the cold winter months. The law nowstates an individual who spends more than 182 days annually in the states, ormore than 120 days average over a three-year period can be considered aresident for tax purposes.

Anew piece of legislation called the Jobs Originated through LaunchingTravel Act permits Canadian retirees to spend up to 240 in the United States,but now snowbirds spending that amount of time here may have to pay income andestate tax.

However,if an IRS form 8840 form called the Closer Connection Exemption Statement forAliens is filed snowbirds can avoid tax fines. Not filing the 8840 form couldcost snowbirds upwards of  $10,000.

See Gail Johnson, What Canada’s Snowbirds Need to Know About U.S. Taxes, Yahoo Finance, Oct. 18, 2013.

Special thanks toJim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringingthis article to my attention.