Canadians who received money in 2019 from a U.S. source while here may have to file a U.S. tax return. But if you are a snowbird or spend a limited amount of time in the U.S., you can establish your tax “home” as Canada, avoiding that requirement. You would then be responsible for any taxes owed under your Canadian tax return. To establish Canada as the appropriate tax authority, international tax experts advise you file a Form 8840, “Closer Connection Exception Statement For Aliens”, with the IRS. It establishes that your proper tax jurisdiction is Canada, and that a U.S. tax return is not necessary. To determine if this is right for you, contact your tax professional. If you need a referral to international tax expert, contact me at at 480 675-0112 or mark@simplysoldaz.com.
