Canadian Snowbird

You spend part of each year in the US, typically wintering in a southern state. Your primary goal is to stay under the Substantial Presence Test threshold or file the closer connection exception to remain a Canadian tax resident only.

Complexity2/5Low-Medium

US Status

Nonresident alien (goal is to avoid US tax residency via SPT management or Form 8840)

Canada Status

Resident (maintain full Canadian residency ties)

Typical Forms Required

  • Form 8840 (Closer Connection Exception Statement)
  • Form 1040-NR (only if US-source income exists)
  • T1 General (Canadian return reporting worldwide income)
  • T1135 (if specified foreign property exceeds $100,000 CAD)

Key Risks

Accidentally triggering the Substantial Presence Test by exceeding 182 weighted days

Failing to file Form 8840 when relying on the closer connection exception

US-source income (rental, dividends) creating a US filing obligation even without residency

Step-by-Step Filing Guide

  1. 1

    Count your US days carefully using the SPT formula: current year days + (1/3 of prior year days) + (1/6 of two years prior days).

  2. 2

    If the weighted total is 183 or more but you have a closer connection to Canada, file Form 8840 by June 15.

  3. 3

    Keep your US stays under 182 current-year days to preserve Canadian health insurance eligibility in most provinces.

  4. 4

    File your Canadian T1 return reporting worldwide income as a Canadian resident.

  5. 5

    If you earn US-source income (rental, business), file Form 1040-NR to report it.

  6. 6

    Consider US travel medical insurance, as provincial health coverage may lapse after extended absences.

Frequently Asked Questions

How many days can I spend in the US as a snowbird?

There is no single fixed limit. The SPT uses a weighted three-year formula. Generally, staying under 120 days per year keeps you safely below the 183-day weighted threshold. Stays over 182 days in a single year always trigger the SPT.

What is Form 8840 and when do I need it?

Form 8840 is the Closer Connection Exception Statement. File it if your weighted SPT days equal or exceed 183 but you have a closer connection to Canada (home, family, bank accounts, driver's license). It is due June 15 of the following year.

Do I owe US tax as a snowbird?

If you successfully avoid US tax residency, you only owe US tax on US-source income (such as US rental income or US dividends not covered by treaty withholding rates). Most snowbirds with no US-source income have no US tax liability.

Will spending time in the US affect my provincial health coverage?

Most provinces require you to be present in Canada for a minimum number of days (typically 153 to 183 per year) to maintain provincial health insurance. Check your province's specific rules.

Find Your Exact Filing Requirements

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