Canadian Snowbirds: This Free App Helps You Track Your Time in the U.S.

As a Canadian snowbird, you know how crucial it is to monitor the number of days you spend in the States. You want to keep track of the time you remain across the border to avoid being considered a U.S. resident by the Internal Revenue Service (IRS).

Why Is It So Complex to Track Your Time in the U.S.?

If someone in your entourage has told you that the rule is simple—just don't exceed 183 days in the U.S. in a single year to avoid being considered a U.S. tax resident—that's actually an oversimplification. The reality is much more complex.

The calculation considers not only the current year but also the two previous years. This process is based on a "Rolling Calendar" rather than a traditional calendar year. In other words, you need to look at a three-year period, counting the days spent in the U.S. according to a specific formula that doesn't reset each year on January 1st.

This calculation method, which takes into account days spent in the States over a three-year period, makes managing your stay much more intricate. It's no surprise that the calculations can seem confusing and the total number of days doesn't necessarily reset to zero.

To avoid errors and ensure your compliance, it's essential to use the right tools and closely monitor your length of stay.

Avoid Tax Surprises by Correctly Calculating Your Days in the U.S.

For tax purposes, determining the number of days spent in the U.S. is far from straightforward. This calculation is based on what the IRS calls the "Substantial Presence Test," a complex assessment that determines whether you are considered a U.S. tax resident.

To be considered a U.S. tax resident, you must meet the following criteria:

Be present in the U.S. for at least 31 days during the current year, AND

Accumulate 183 days over a three-year period, which includes the current year and the two previous years. The calculation breaks down as follows:

• All days you were present in the current year, and
• 1/3 of the days you were present in the first year preceding the current year, and
• 1/6 of the days of presence in the second year preceding the current year.

Many snowbirds turn to Excel spreadsheets to track their stay in the U.S., but this process can quickly become a headache, especially if you make frequent trips back and forth.

It's therefore crucial to stay vigilant and understand how these calculations are performed to avoid any complications with the IRS.

Discover This Mobile App for Android, iPhone and iPad

The good news is that there's a free mobile app to simplify these calculations! On your smartphone or tablet, the SnowbirdsUS Day Tracker app is designed to make your life easier by crunching the numbers for you. All you have to do is create a free account and enter the dates of your trips to the United States.

With this app, you simply need to enter the start and end dates of each of your stays in the States, as well as your destination. You can also specify whether each trip is personal or professional to better organize your records.

Add all your trips to the app, and it will calculate the number of days remaining before you exceed the authorized limit. You can even see the number of days remaining and the percentage of the 183-day threshold already used.

For an accurate overview, it's also necessary to enter the dates of your stays for the previous three years, since the substantial presence test evaluates your presence over a three-year period. This complete feature ensures precise and efficient management of your travels, while saving you the hassle of doing the math yourself.

Easily Know if You Exceed the Permitted Threshold

If you exceed the substantial presence test threshold, the app will alert you to your legal obligations, particularly regarding Form 8840, titled "Closer Connection Exception Statement for Aliens."

This form is critical for Canadian snowbirds as it allows them to reside in the U.S. for up to 182 days per year without paying U.S. taxes. To benefit from it, you must meet the required criteria and submit this form to the IRS before June 15th of the year following the year in which you were considered a tax resident.

The app helps you stay informed and comply with these requirements, giving you valuable peace of mind.

Technology to the Rescue!

If you haven’t yet found a method to track your days in the U.S., download the free SnowbirdsUS Day Tracker app to stay informed and avoid exceeding your allowed time. If you already have a tracking method, why not verify your results with this app? You can never be too careful!

Don’t forget to get your travel insurance with a quick quote from soNomad well before your departure, to check that off your preparation list!

This article is for information purposes only. It does NOT constitute legal, tax, accounting or other advice and should not be relied upon as such. If you require such advice, you should seek the services of a qualified professional to advise you.

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