Canadian Full Timers and Insurance
Hi, My husband and I are about to take to the road full time (for at least a year and maybe longer.) We are having trouble finding insurance for out of province travel as we can only be out of Alber...
Forum Discussion
This is an excerpt from the snow Birds site which should allay any concerns
8840 - Closer Connection Exemption Statement for Aliens
Canadian residents who winter in the U.S. are technically subject to U.S. income tax if they exceed a specific number of days (based on a calculation on the form 8840) in the U.S. in any one year.
To avoid U.S. taxation, IRS form 8840 (Closer Connection Exemption Statement for Aliens) needs to be filed annually with the U.S. Internal Revenue Service.
The form, in essence, acknowledges that you met or exceeded the "substantial presence test" BUT are not going to be filing a U.S. income tax return due to the fact that you maintain "a closer connection" to a foreign country, such as Canada, where you will be paying annual income tax.
You will be considered to have a "closer connection" with a country other than the U.S. based on the location of:
• Your permanent home.
• Your family.
• Your personal belongings, such as cars, furniture, clothing, and jewellery.
• Your current social, political, cultural, or religious affiliations.
• Your business activities (other than those that constitute your tax home).
• The jurisdiction in which you hold a driver's licence.
• The jurisdiction in which you vote.
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.
Canadians should pro-actively complete and file a new 8840 form each year with the U.S. Internal Revenue Service. This is a positive acknowledgment that you are entering the U.S. each year as a "temporary visitor for pleasure" and are complying with U.S. tax laws. A photocopy of each year's completed form should also be carried, when crossing the border into the U.S. the following year, to indicate that you are entering the U.S. as a temporary visitor from Canada.
8840 - Closer Connection Exemption Statement for Aliens
Canadian residents who winter in the U.S. are technically subject to U.S. income tax if they exceed a specific number of days (based on a calculation on the form 8840) in the U.S. in any one year.
To avoid U.S. taxation, IRS form 8840 (Closer Connection Exemption Statement for Aliens) needs to be filed annually with the U.S. Internal Revenue Service.
The form, in essence, acknowledges that you met or exceeded the "substantial presence test" BUT are not going to be filing a U.S. income tax return due to the fact that you maintain "a closer connection" to a foreign country, such as Canada, where you will be paying annual income tax.
You will be considered to have a "closer connection" with a country other than the U.S. based on the location of:
• Your permanent home.
• Your family.
• Your personal belongings, such as cars, furniture, clothing, and jewellery.
• Your current social, political, cultural, or religious affiliations.
• Your business activities (other than those that constitute your tax home).
• The jurisdiction in which you hold a driver's licence.
• The jurisdiction in which you vote.
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.
Canadians should pro-actively complete and file a new 8840 form each year with the U.S. Internal Revenue Service. This is a positive acknowledgment that you are entering the U.S. each year as a "temporary visitor for pleasure" and are complying with U.S. tax laws. A photocopy of each year's completed form should also be carried, when crossing the border into the U.S. the following year, to indicate that you are entering the U.S. as a temporary visitor from Canada.
