TAX PLANNING FROM THE KNOWLEDGE BUREAU
By Evelyn Jacks
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 snowbirds 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” (IRS
Form 8840) must be submitted to the U.S. Internal Revenue Service (IRS) on
June 15. 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
IRS., 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.
From the Knowledge Bureau’s comprehensive tax database, questions asked on
this form include:
* Where the individual has his or her permanent home and keeps personal
* 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
* The country where the individual is covered by a government health plan.
June 30 is also a notable tax deadline for investors who
have Tax-Free Savings Accounts (TFSAs). 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
For more information, consult a professional Knowledge Bureau-trained
DFA-Tax Services Specialist
© 2018 The Knowledge Bureau, Inc. All rights reserved. Reprinted with
Evelyn Jacks is the founder and President of Knowledge Bureau, which
brings continuing financial education in the multiple areas of
specialization to advisors and their clients. She is the author of 52
books on tax and wealth planning. This article
originally appeared in the
Knowledge Bureau Report. Follow Evelyn Jacks on Twitter
@EvelynJacks. Visit her blog at www.evelynjacks.com.
Evelyn Jacks’ latest book,
NEW ESSENTIAL TAX FACTS: How to Make the Right Tax Moves and Be
Audit-Proof, Too is available now.
Notes and Disclaimer
The foregoing is for general information purposes only and is the opinion
of the writer. No guarantee of investment performance is made or implied.
It is not intended to provide specific personalized advice including,
without limitation, investment, financial, legal, accounting or tax advice.