Snowbird Advisor has received a number of inquiries recently about IRS Form 8840 - the Closer Connection Exception Statement for Aliens (and yes, that’s you – you’re considered an alien!)
Canadian snowbirds can stay in the U.S. for up to 182 days each calendar year and claim this exemption to avoid being considered a U.S. resident for tax purposes.
Depending on how much time they spend in the U.S., many snowbirds do file Form 8840 every year to prove that they have a closer connection to Canada than the United States. Otherwise, they may be subject to U.S. taxation in the eyes of the IRS, which can have serious adverse tax consequences, including double taxation in Canada and the United States!
When is the deadline to file IRS Form 8840?
Form 8840 must be filed by June 15th for time spent in the U.S. during the previous calendar year and should be filed on an annual basis. Always keep a copy of the form and a record of sending it.
Is there a fee to file IRS Form 8840?
Form 8840 is free to file if you do it yourself, but you may want to consider hiring an accountant or qualified tax filing service to assist you.
Be aware that some websites claim they will file your Form 8840 for a fee. Be wary of these websites, as many of them simply submit the form the same way you would if you filed it yourself for free, and some are outright scams trying to obtain your personal information.
Where can I get IRS Form 8840?
You can find the latest fillable version of Form 8840 on the official IRS website here.
IRS Form 8840 – Tips and Articles
It’s important to note that not all snowbirds need to file a Form 8840, and whether or not you should file really depends on how much time you spend in the U.S.
If you are looking for general tips and information about Form 8840 - including who should consider filing - you may find the following articles helpful:
U.S. Residency Rules Every Canadian Snowbird Must Know