For as long as memory serves, Canadians of retirement age have been moving south for the winter to escape the cold. This group of people are lovingly referred to as snowbirds. Despite the state of the dollar, Canadians are still holding to this practice. They are also one of the few groups of “foreigners” who are being welcomed by the United States. Tourism from Canada spurs job growth in the destination towns across the US aiding in their economy. Not to mention that Canadians purchase 6% of all homes sold in Florida, therefore injects nearly half a billion dollars in property taxes per annum.
Most likely due to these factors, the US has tabled a bill to allow Canadians over the age of 55 to stay for up to eight months of the year. While congress wants Canadians to stay longer, the IRS wants to ensure it collects what it can. Currently stays of four months or less have allowed Snowbirds to maintain their US tax exempt status. The new formula is based on this:(more…)