Ties to the US? Know Your Filing Obligations

Insights
| 2/10/2021

Whether you’re a snowbird with property in the United States or a U.S. citizen living in Canada, it’s important you know your responsibilities when it comes to filing your taxes. Crowe MacKay LLP’s tax advisors highlight important factors to save you time and money this tax season.

U.S. Citizens Living in Canada

If you are a US Citizen living in Canada, you still have U.S. tax filing obligations. If you are delinquent in your U.S. filings, the IRS does have a streamlined process in place to allow you to get caught up without penalties. However, it is unclear how much longer the IRS will keep this process open, so if you have been holding off, now is the time to get caught up.

Being a U.S. citizen can also present problems if you hold investments in Canada such as RESPs, RDSPs, TFSAs, and mutual funds, or if you are the shareholder of a Canadian corporation.

If you are or ever have been a U.S. Citizen, we suggest you contact your Crowe MacKay tax advisor to determine your filing requirements.

Snowbirds

If you own property in the United States, or are spending significant amounts of time down there, make sure you let your Crowe Mackay tax advisors know. You can run into tax issues on both sides of the border, so it is important to know and understand the rules and how they may affect you. Both Canada and the U.S. can now track the number of days you are spending in each country, so being aware of your compliance requirements is more important than ever.

This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.

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