After April 30: Tax Deadlines for Snowbirds, Proprietors and Investors

It’s the season when many Canadian snowbirds who spend the winter in the United States return to Canadian soil. Timely, as there is also an essential tax deadline for these individuals coming up soon. Learn more about this deadline, and other essential dates that tax and financial advisors must address now that the April 30 personal income tax filing deadline has passed.

June 15 is the next key date, as it is the T1 proprietorship filing deadline.

Quarterly tax installment payments are also due.

Additionally, the Closer Connection Exception Statement for Aliens must be submitted on June 15 (I.R.S. form 8840). This is the important deadline for snowbirds who spend a significant amount of time living in the United States. Failure to appropriately complete and submit this statement could lead to U.S. tax obligations. To avoid this, snowbirds can answer the questions on the form to prove that they have greater ties to Canada. If approved by the I.R.S., they maintain their non-resident alien status, and don’t have to submit a U.S. tax return. This status is granted when Canadians effectively prove they stayed in the U.S. for fewer than 183 consecutive days in the tax year, and that they have a tax home in Canada.

As excerpted from Knowledge Bureau’s comprehensive CE Summits Knowledge Journal, questions asked on the form include:

• Where the individual has his or her permanent home and keeps personal belongings
• Where the individual’s family lives
• Where the individual’s current social, political, cultural or religious activities take place
• Where the individual’s principal income-earning activities take place
• The jurisdiction in which the individual holds a driver’s license
• Where the individual is registered to vote
• Where the individual’s financial accounts are located
• The country the individual lists as his or her residence when completing official documents
• The country where the individual is covered by a government health plan

June 30 is also a notable tax deadline for TFSA investors. In 2018 this date falls on a Saturday, so plan accordingly! Be sure to have the following forms submitted on time:

• Form RC243 – TFSA Return
• Form RC243 – Schedule A – Excess TFSA Amounts
• Form RC312E – Reportable Transactions

Additional educational resources:

If you are a tax or financial advisor who works with Canadian snowbirds that winter in the U.S., you don’t want to miss this year’s Spring CE Summits with cross-border tax expert Dean Smith, coming soon in May. You’ll receive a copy of our Knowledge Journal at no additional charge, your essential “tax bible” for tax season every year. Can’t attend? Purchase your copy of the Knowledge Journal online and, for a line-by-line guide to Canadian tax filing, sign up for a subscription to EverGreen Explanatory Notes (a free trial is available).

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