How Long Can Canadians Stay in Florida

IRS Substantial Presence Test

Canadians who spend significant time in the United States may meet the IRS Substantial Presence Test and be considered U.S. residents for federal tax purposes. The test generally considers the number of days spent in the U.S. during the current year and the two preceding years.

In certain circumstances, Canadians who meet the Substantial Presence Test may still qualify to be treated as non-residents for U.S. tax purposes under the Closer Connection Exception.

To qualify, you generally must have spent fewer than 183 days in the U.S. during the current year, maintain a tax home in a foreign country, and demonstrate that you have a closer connection to that country than to the United States. You must also meet the other IRS eligibility requirements.

The Closer Connection Exception is generally claimed by filing IRS Form 8840 by the applicable filing deadline. Because tax residency rules can have significant consequences, Canadians who spend extended periods in the United States should keep accurate records of their travel days and consult a qualified cross-border tax professional when necessary.

IRS Form 8840 – Closer Connection Exception

Get IRS Form 8840 (fillable version)

What Is the Test for U.S. Tax Residency?

The IRS uses the Substantial Presence Test to determine whether certain non-U.S. citizens should be treated as U.S. residents for federal tax purposes.

Generally, you meet the test if you are physically present in the United States for:

• At least 31 days during the current calendar year, and

• 183 days or more using a weighted calculation covering the current year and the two preceding years.

How Are the Days Calculated?

For the Substantial Presence Test, the IRS generally counts:

• All qualifying days you were present in the U.S. during the current year

• 1/3 of the qualifying days you were present in the U.S. during the previous year

• 1/6 of the qualifying days you were present in the U.S. during the second preceding year

If the total equals 183 days or more, and you were present for at least 31 days during the current year, you generally meet the Substantial Presence Test.

Certain days may be excluded from the calculation under IRS rules, so your actual number of days in the United States may not always be the same as the number of days counted for the test.

How Is a Day in the U.S. Counted?

Generally, the IRS treats you as present in the United States on any day you are physically present in the country at any time during that day.

For example, if you enter the U.S. at 11:00 p.m. on Thursday and leave at 11:00 a.m. on Friday, those days would generally count as two days of presence, even though you were in the country for only 12 hours.

What If You Meet the Substantial Presence Test?

Meeting the Substantial Presence Test does not necessarily mean you must be treated as a U.S. resident for tax purposes.

Certain individuals who spend fewer than 183 days in the United States during the current calendar year may qualify for the Closer Connection Exception if they maintain a tax home outside the United States, have a closer connection to a foreign country, and satisfy the other IRS requirements.

The Closer Connection Exception is generally claimed by filing IRS Form 8840.

Disclaimer

This information and any Substantial Presence Test calculator provided on this website are for general informational purposes only and do not constitute tax, legal, or immigration advice.

Individual circumstances can affect how U.S. residency rules apply. If you require advice regarding your U.S. tax residency or filing obligations, you should consult a qualified cross-border tax or legal professional.