How long can Canadian snowbirds stay in the U.S.

I received a call from a client last week who was scrambling to get packed to make her annual trip to sunny Arizona ahead the Weather Channel’s forecast of blowing snow and frigid temperatures. Anyone who says, “don’t judge the day by the weather” has yet to experience a Canadian winter, and that is why many of us make the trek far south of the 49^th parallel seeking refuge from the cold.

My client, who I’ll call Sally (not her real name) was at a social function over the weekend and the question came up about the number of days a Canadian snowbird can be in the United States each year without running afoul of the IRS, and she wanted to confirm with me that she was clear on the rules. There are still a whole lot of folks out there who think that number is 180 days, or you’ve likely had someone tell you 6 months. That, would be incorrect.

Like everything the IRS does, it’s complicated & confusing, and, the penalties for non-compliance can be severe – not to mention that they already know how many days you’ve been in the USA when Customs asks the question whilst crossing the border, so keep close tabs and count your days.

Here is the formula as written by The Internal Revenue Service (IRS):

You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:

1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
• All the days you were present in the current year, and
• 1/3 of the days you were present in the first year before the current year, and
• 1/6 of the days you were present in the second year before the current year

For example:

You were physically present in the U.S. on 120 days in each of the years 2019, 2020 and 2021. To determine if you meet the substantial presence test for 2021, count the full 120 days of presence in 2021, 40 days in 2020 (1/3 of 120), and 20 days in 2019 (1/6 of 120). Since the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2021.

I know what you’re thinking, “clear as mud.” I will say as a general rule of thumb, that as long as you limit your winter visits to no more than 120 days per year, it is unlikely you’ll have an issue, however, I encourage you to visit the Irs.gov web page, and speak to an Immigration Attorney if you still have questions. If you need an introduction to a lawyer who can help, feel free to give me a call. As a Cross Border Certified Financial Planner, dual citizen & fellow snowbird - providing you with a network of professionals to ensure your time spent down south each year is trouble free is one of the many things we do to help our clients & friends.

Joseph Dawson CFP®
Financial Advisor