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ARTICLE · 02 OCTOBER 2026

IRS Tax Reporting For Canadians: Which US Forms You Need And When

Altro LLP
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Canadians with US property, rental income, or extended winter stays face specific IRS reporting requirements that go far beyond simple tax residency rules. Understanding which forms to file, when to file them, and how FIRPTA withholding, the Substantial Presence Test, and cross-border tax credits interact can mean the difference between routine compliance and costly penalties.

CanadaTax
David Altro
David Altro

Every spring, clients ask us: “I’m Canadian and I pay my taxes in Canada. Why does the IRS want a return from me?” The answer is usually a Florida condo, an Arizona rental, a US pension, or a winter that ran a few weeks too long.

IRS tax reporting for Canadians is not just for US citizens. The US taxes non-residents on US-source income and US real estate, and it expects paperwork even when no tax is owing. Miss a form and you can lose deductions, overpay withholding, or be treated as a US resident taxpayer.

Key takeaways

  • Snowbirds who meet the Substantial Presence Test file Form 8840 by June 15 of the following year to stay US non-residents.
  • US rent is taxed at 30% of gross unless you elect net-basis taxation and file Form 1040-NR every year.

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