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www.snowbirds.org
CSA TRAVEL INFORMATION GUIDE
Will I Be Subject to Taxes in the United States?
If you are a Canadian resident who spends part of the year in the United States you may be subject to
U.S. taxation by simply being physically present in the U.S. for more than a specific number of days
each year.
Your tax situation can get even more complicated if you have any income source from the U.S.
including rental income derived from renting out property you own in the U.S. for the part of the year
you are not using it.
As a Canadian resident who spends part of the year in the United States, you are considered either a
resident alien or a non-resident alien.
Resident aliens are generally taxed in the United States on income from all sources worldwide. In
contrast, non-resident aliens are generally taxed in the U.S. only on income from U.S. sources.
That U.S. income is divided into two categories:
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Income that is effectively connected with a trade or business in the U.S. (including income from
the sale or exchange of U.S. real property); and
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Income that is not effectively connected with a trade or business in the U.S., but is from U.S.
sources (including interest, dividends, rents and annuities).
Effectively connected income, after allowable deductions, is taxed at the same rates that apply to U.S.
citizens and residents. Income that is not effectively connected is taxed at 30% or a lower treaty rate.
How do you determine if you are a resident alien for tax purposes or if you are a non-
resident alien (and have a closer connection to Canada)?
If you were physically present in the United States 183 days or more in the calendar year (more than
one-half of the year), you are deemed to be a resident alien.
You are considered to have a closer connection to Canada than the United States if you maintain more
significant ties to Canada. Some important ties include the location of the following:
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Your permanent home and business activities
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Your family
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Personal belongings, such as cars, furniture, clothing, and jewellery
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Social, political, cultural, or religious organizations to which you belong
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The jurisdiction where you vote
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The jurisdiction where you hold a permanent full driver’s licence
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You are physically present in the United States 182 days or less in any year.
It does not matter whether your permanent home is a house, an apartment, or a furnished room. It
also does not matter whether you rent or own it. It is important, however, that your home is available
at all times, continuously, and not solely for short stays.
If you hold American citizenship (even a dual citizen of Canada and the United States); have applied
to the U.S. Citizenship and Immigration Services (USCIS) for permanent resident status in the U.S. (i.e.
applied for a “green card”); or you have been granted permanent residency status (i.e. already have a
“green card”), then you may not be eligible to claim the closer connection exemption.