Import Changes to Crossing US Border as of June 30 2015

[Bobby Kirk]

Originally Posted by coastsignal

Hi Carol,

Thanks for the post.

I have 2 questions.

What happens to the Canadian that spends over the 120 day limit in the US?

Is there a limit on the time a US citizen spends in Canada, and if so, what happens to them, if they go over that limit?

Thanks,
Mark

Hi Mark,
If a Canadian stays in the U.S longer than 120 they will have to pay income tax in both countries. If they live in Ontario they put their O.H.I.P. (ontario health insurance plan) at risk as well.
Bobby

[Almost There]

Originally Posted by Bobby Kirk

Hi Mark,
If a Canadian stays in the U.S longer than 120 they will have to pay income tax in both countries. If they live in Ontario they put their O.H.I.P. (ontario health insurance plan) at risk as well.
Bobby

Sorry but that's not quite right!

If you stay in the US longer than an aggregated formula (see my post above) you must file form 8840 Closer Connection Exception Statement for Aliens to prove to the US IRS that you don't have to file a US income tax return.

As long as you file the above form correctly you are exempt from filing the tax return, unless of course you have US income which is a whole other ball of wax.

Ontario Health Insurance requires presence in the province of 6 months. Other provinces have different limits - for example BC allows residents of that province to be outside the province for up to 7 months...you can still only stay in the US for 6 months because of their visitor regulations but you can travel to other provinces without fear of losing your health insurance.

[Franswa]

or bottom line reason for the changes is the US trying to collect all of the money it is owed under the US tax code....

the US is the only industrialized country that taxes its citizens on income earned OUTSIDE the US....

the "logic" or extension of such a policy is that if some people are in the states for more than some alloted time calculation the US wants to consider them "citizens" and tax their income no matter where it is earned or comes from

the intent of the new regulations probably don't have anything to do with retired Canadians travelling in little FG trailers watching their pennies while catching a few rays of sunshine in the middle of winter.....but with all government regulation (especially one as over-reaching as the US tax code) they get caught in the net....

so now besides watching their pennies.....they have to watch the calendar

[Bob Miller]

You don't have to be a "citizen" to get taxed in the US of A, we are an equal opportunity taxing entity, we get our money any place we can....LOL

[TomK]

Originally Posted by FRED SMAILES

All we do is spend money when we're down there,,?
Guess it's not enough!
A lot of Florida and Arizona businesses enjoy Canucks, well at least their
money and not having to worry about how many pistols are in the camper!
I don't get it?
Fred

Fred, relax. The Americans I know and associate with, all welcome Canadian visitors, and not just for their money. We enjoy our trips to the great white north just as much. I believe Carl (CPW) is correct. The government is just getting more clever in tracking us in order to get their due.

Other than respect, none of the folks I tend to hang with would give your trailer full of pistols a second thought. I'm assuming you are an honorable man of good intent of course. Observe the law and you'll have no problem here. I don't think we're supposed to discuss firearms, and I won't, other to say I'm a sheep dog. Untitled Document

Tom

[Bob Miller]

Well, maybe not all Canadians are as welcome as most. Just thinking of a singular individual singer (?) who's initials are JB. Apparently entry lines into Canada have been slower as of late due to checks to verify that he is not trying to sneak back home..... LOL


Not to say that there aren't a few natives down here that we wouldn't like to export ourselves, but we wouldn't do that to Canada.....

[steve dunham]

We make an annual fishing trip to Manitoba Canada . The Canadian Border Guards always ask for the purpose of our visit even though we are towing a boat full of fishing gear . They also ask where we are staying and where we will be fishing . We told them the name of the lake ( Moose Lake) When we arrived at US customs on our return trip ,the US Border Agent checked our I'D' s and then asked " How was fishing on Moose Lake" Was the US Border Agent a psychic or was it just a lucky guess ?

[Carol H]

Originally Posted by steve dunham

We make an annual fishing trip to Manitoba Canada . The Canadian Border Guards always ask for the purpose of our visit even though we are towing a boat full of fishing gear . They also ask where we are staying and where we will be fishing . We told them the name of the lake ( Moose Lake) When we arrived at US customs on our return trip ,the US Border Agent checked our I'D' s and then asked " How was fishing on Moose Lake" Was the US Border Agent a psychic or was it just a lucky guess ?

LOL well as they shouldn't have had access at that time to the Canadian entry info I am going to suggest it was a good guess! There is a large vintage trailer meet held each year close to a small border crossing. When crossing over to attend the meet it is not uncommon for the US border staff to say "let me guess your heading to the Lynden trailer meet?"

Normally though the asking of questions as to where your going and where you will actually staying is the second question asked - right after asking the purpose of your visit to their country. They are attempting to catch you out on the story as to why you are entering the county. If you can't give them specifics as to exactly where your going quickly you can be sure more questions will follow.

Funny enough since I started pulling with a truck and if I am traveling on my own the second most common question asked aside from where exactly am I going camping is: "Are you the registered owner of the truck and the trailer." But if I have a male passenger with me I am never asked that.

[Andrew Gibbens]

Originally Posted by Bob Miller

You don't have to be a "citizen" to get taxed in the US of A, we are an equal opportunity taxing entity, we get our money any place we can....LOL

Yes, we have a famous example in the Mayor of London. Born in the US to British parents studying in the US, he has both US and British citizenship. The US tax authorities are trying to get capital tax payments from him, although he hasn't lived there since his birth in 1964!

But maybe it is just revenge since the city of London has a long-standing dispute with the US Embassy. When 'road charging' (ie, a daily toll for vehicle use in the city centre) was introduced, the US Embassy declared that they considered it a form of local taxation from which they considered themselves exempt. The penalty charges run up by the embassy for non-payment for embassy vehicles stands at $8 million and includes a fine for the US President's limo last year.

I had been wondering if the 180-day limit was the point at which 'foreigners' would become liable for US taxes.

[TomK]

Our tax disputes with England go back much further than that. I'm thinking about the Boston Tea Party as the most famous, but that wasn't the first. It just happened to be the straw that broke the camel's back.

Tom

[Almost There]

Originally Posted by Andrew Gibbens

I had been wondering if the 180-day limit was the point at which 'foreigners' would become liable for US taxes.

Actually, there is NO limit in terms of days for exemption from US tax liability.

Any money 'earned' (or won for that matter) is taxable technically although personal exemptions reduce the tax to nil, it still has to be accounted for.

[Bob Miller]

Hmmmm... Actually he lived here until he was five and he and his wife owned a 1.8 million dollar house that they sold for a huge profit, creating a capital gains tax as a U.S. citizen. As he doesn't want to relinquish his U.S. citizenship, he got the opportunity to pay his tax bill.... Here's the rest of that story:
London Mayor Pays 'Absolutely Outrageous' US Tax Bill


To quote someone else: "Perhaps ironically, the U.K. was once forced to spin off an important North American subsidiary partially over tax issues"


And yes, the London city centre road tax is a PITA, especially if you have a rental car and get a surprise bill after you return home. But it's their city, their rules and it's still a great place to visit.

[Bob Miller]

Maintaining "Dual Citizenship" is a two edged sword and, as clipped from:
Dual Nationality


"However, dual nationals owe allegiance to both the United States and the foreign country. They are required to obey the laws of both countries. Either country has the right to enforce its laws, particularly if the person later travels there. Most U.S. nationals, including dual nationals, must use a U.S. passport to enter and leave the United States. Dual nationals may also be required by the foreign country to use its passport to enter and leave that country. Use of the foreign passport does not endanger U.S. nationality. Most countries permit a person to renounce or otherwise lose nationality."


While Marie Antoinette DID NOT say "Let them eat cake", if one wants to have their cake and eat it too, they must be prepared to pay for the privilege.

[Victor Benz]

Originally Posted by CPW

I personally think this is being blown all out of proportion. The rules haven't changed; it's just the "big brother is watching and tracking you technology" has gotten more intrusive.

You are quite right, the laws have been in place for a long time. The tools to track and effectively enforce them has not, until now.

By exceeding the 120 day limit opens Canadians to US income tax IN ADDITION to all tax paid as Canadians. I know snowbirders that have been caught in this, and the important thing is that tax is additive unless US Government IRS form 8440 is used religiously when entering the US.

Vic