When the temperatures drop each year, many Canadians head south
for the winter for a few months of bliss to escape the cold
weather. While enjoying the sun, it is important that these
“snowbirds” are aware of the tax obligations that they
may be subject to as a result of time spent outside of Canada, as
well as credits they may be eligible to claim.
U.S Tax Residency
Canadians visiting the U.S. for the winter should ensure they
are not considered U.S. residents for taxation purposes, and as a
result would be subject to the applicable U.S. income tax laws.
There are two tests used to determine whether an individual is a
U.S. resident and subject to U.S. income tax laws.
The first test, Substantial Presence Test, is met if an
individual is 1) in the U.S. for 31 days during the current year
and 2) the sum of the following is equal to 183 days:
