For many Canadians, the opportunity to avoid a harsh winter by fleeing to the southern United States is irresistible. To encourage this migration, the United States is considering changes to its immigration rules that would allow Canadians to spend even more time there. For example, under the latest proposal, certain Canadians who are at least 55 years old could spend an extra two months in the United States each year. If passed, this may be welcome news for some. However, Canadians must also consider the US income tax rules. Unless changes are also made to the US Internal Revenue Code, an extended stay in the United States could have adverse tax implications.
This Tax Insights outlines the current US income tax rules. These rules apply to all Canadians. The immigration proposal contemplates changes to the Internal Revenue Code to accommodate the extended stay. Stay tuned for further updates on these developments.