For many Quebecers, winter is the perfect excuse to hit the heels. If you’re one of those people who spend several months in the United States during the year, there are a few things to consider when filing your taxes. Josee Cabral, Senior Tax Specialist H&R blockhelps you see more clearly.
Here are 5 things snowbirds in Quebec should know this tax season.
1. How many days can I stay in the United States?
How long can you stay in the United States? To avoid having to make a double declaration, one in the United States and one in Canada, you must never stay there for more than 183 days. A tax treaty between Canada and the United States allows Snowbirds to avoid double taxation if the established limit is not exceeded.
In addition to submitting a double tax return, extending a trip abroad may result in the loss of your entitlement to the Régie de l’assurance maladie du Québec.
2. Do I have to declare my income in the United States?
Even if you are filing this tax return in Canada, you must report all of your US income. If necessary, note that Revenue Canada may request information from Canadian and US Customs to determine the exact number of days you have spent abroad.
3. Do I meet US residency standards?
The IRS examines the time an alien spends in the United States to determine if they are a resident alien. Because resident aliens are required to file a U.S. tax return, it is important that you know if you meet the requirements for U.S. residency.
4. How can I file a tax return if I work abroad?
Most of our tax treaties include a clause that says you will not be in the other country for more than 183 days, If you work for a Canadian employer that does not have a permanent establishment in that country, you are exempt from paying tax in that country.
5. Do I have to pay taxes if I work abroad?
Yes, it depends on your tax return. However, some tax treaties provide a tax exemption if your salary does not reach a certain amount threshold, regardless of whether your employer is resident or non-resident in the country in question. For example, if you earn less than $16,000 (or the equivalent in pesos) in Mexico, you don’t have to pay taxes there.
To learn more, visit the H&R Block website or the Canadian Government website.