The IRS has developed definitions and tests for assessing people in terms of residency. Most importantly whether they would qualify to pay taxes or not. Although it appears most Canadian snow birds would not fall under these definitions. It is a good idea to become aware of these tests. Make sure that you have taken the steps necessary to not qualify as a resident alien in the United States. The thing that many Canadians fail to think about is that once you are in the United states or any other country for that matter, you fall under their laws. It really does not matter whether you are Canadian or not.
The following outlines the substantial presence test that the IRS applies:
Demonstrating that you are not a resident alien can be accomplished in a number of ways providing that you are prepared. Here are a few that seem to qualify:
If you are concerned about this issue or are being assessed as a resident alien, it is time to seek out an expert. Someone who can assess the details of your situation and outline what you need to do. This post is just a rough guideline. It should be considered an outline of the issue facing snow birds who are dealing with US tax issues.
Comments are welcome.
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