Do you spend time in the USA?

April 15, 2013 at 12:16 PM


If an individual spends 183 days or more in the U.S. they will be considered to be a U.S. resident (subject to some very minor exceptions).  As such, he/she will be subject to U.S. taxation on worldwide income and may need to file several other forms although some relief may be available if the individual is considered a Canadian resident under the Canada-U.S. Treaty.

If an individual spends less than 183 days in the U.S. in the year, but the total of their time as determined by the following formula (substantial presence test) is 183 days or greater, they would be considered U.S. residents.

The total of:

•      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.

If determined to be a resident under this scenario, the individual would be subject to the same considerations as discussed in the “presence of 183 days or more” scenario above.

If an individual is in the U.S. for less than 183 days but is considered a resident under the substantial presence test, they may complete Form 8840 - Closer Connection Exception Statement for Aliens to except themselves from residency.

Editors’ Comment

Specific U.S. advice may be needed in these areas.

Tax Tips & Traps 2013