Liberty and justice for all United States persons abroad

The Isaac Brock Society

Aren’t those Canadian Snowbirds lucky to be able to extend their stay … or are they?

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CARP: Canadian Snowbirds Might Be Able to Extend Their Stay

Toronto Sun: Canadian snowbirds might get to extend their stay south of the border

WASHINGTON – HIDDEN in a sweeping new American immigration reform bill is one small provision aimed at Canadians — making it easier for grey-haired snowbirds to spend more time in the sun.

The short section — buried in 844 pages of legislation — would boost the consecutive amount of time Canadian retirees can spend south of the border from six months to eight.

Canadian Snowbirds might be able to extend their stay

Canadian retirees may soon be able to stay in the United States for an extra two months, up to a total of eight months per year. The US legislation called Jobs Originated through Launching Travel (JOLT) Act, known to many Canadian snowbirds as the “Canadian Retiree Visa” is currently under review by the US Senate. In addition to the extended stay in the US, legislation would expand access to visa services, improve out-dated visa processing systems, speed up visa processing, and expedite entry for priority visitors as well as establish a visa video conferencing pilot program, if the legislation is passed.

The eligibility requirements for the Canadian Retiree Visa are the following:

Have Canadian citizenship;
Be 55 years of age or older;
Maintain a residence in Canada;
Own a residence in the U.S. or have a rental agreement for the duration of stay;
Will not engage in employment while in the United States; and
Will not seek assistance or benefit.

The Act is part of the United States’ efforts to boost their economy via tourism, and it is attempting to capitalize on the increasing number of Canadian visitors and the business they bring when travelling.

According to Statistics Canada, Canadian residents took 20 million overnight trips to the U.S in 2010, an 11.1% jump from the previous year, and spent $18.2 billion. It is no surprise that the US sees this as an opportunity, but at what costs to Canada and Canadian residents is unknown yet.

While many are happy about this news, Canadians should keep in mind that this Act may affect them, especially with respect to provincial health plans and residency issues for income tax purposes. CARP will seek more information from provincial and federal government, but at the moment it is uncertain whether Canadians will be able to keep their provincial health coverage if they are out of the country for the additional time provided by the JOLT Act. CARP will continue to monitor and report on the JOLT Act and its potential effects on Canadians travellers.

2013 US JOLT Legislation Section – by – Section

17 thoughts on “Aren’t those Canadian Snowbirds lucky to be able to extend their stay … or are they?”

  1. THIS VISA IS A TRAP FOR THE UNWARY!

    While it allows an individual to extend their stay in the US for immigration pruposes, IT DOES NOT AFFECT THE EXPOSURE TO US INCOME/ESTATE TAX!!

    Even if an individual has the visa they will be subect to tax on world wide income as soon as:

    a) they are present in the US on average >120 days per calendar year (“substantial present test”) unless they timely file the form 8840; or
    b) they are present in the US >182 days per calendar year.

    Further, if the individual becomes “domiciled” in the US (basically intends to permanently reside there, as determined by the facts and circumstances) they will be subject to the US estate tax on their world wide estate.. even if they are not a citizen.

  2. Look and be aware before you leap:

    Form 8840, Parts 1, 2 and 3

    Avoiding the Snowbirds’ trap Bob Slack and other snowbirds — do you REALLY understand?

    Overkill? Not if you don’t want to be treated like a U.S. taxpayer. And U.S. border officials are very careful checking snowbirds in and out of the States to ensure they don’t overstay their welcome.

    “We’re only allowed to be in the United States for 183 days in a 12-month period, so we would never stay down there longer, not even by a day,” said Bob Slack in an interview from his Florida home.

    Moodys Tax: STOP! Know the changes in US tax law before purchasing that US vacation property

    MNP Tax: US Bill for Snowbirds, Tempest in a Teapot

    Looking to leverage a strong Canadian dollar into a warm, sunny U.S. getaway? Just be aware that the U.S. taxman has got you in his sights.

    Knowing what you now know, just why do you wish to support the US economy over that of Canada?

  6. And given that some snowbirds will be retired, if anything happens to extend their stay – like a cancelled flight, pressing emergency, or illness, and they can’t travel and return as planned, they might exceed the days inadvertently. The border controls and automatic exchange of border crossing data will no doubt be used routinely for tax purposes.

  8. I am just as suspicious as anyone – but this could be a case of the left hand not knowing what the right is doing. GREAT – longer stays…opps, didn’t think about the tax implications

  9. @calgary411,
    Then perhaps generating as much negative attention as possible re the tax implications for Canadian snowbirds would threaten an important revenue source and give the US a black eye – sort of a pseudo boycott effect. It would help protect Canadians, AND highlight the arrogant greedy US tax system at the same time.

  10. @badger
    The substantial presence test would catch snowbirds regardless of whether or not the US taxes its citizens extraterritorially, but as you say, any added focus on US policies designed to prey on the unwitting will only serve to help us. The Canadian Snowbird Association aren’t dummies however, and one good look at their website will tell you that they know what peril awaits anyone who doesn’t know the rules.
    Come into my parlour said the Schumer to the fly.

  11. Canadian Snowbird Association: Canadian Retiree Visa Update

    The CSA has been working closely with New York Senator Charles Schumer’s office for the past 18 months regarding the two month extension for Canadian retirees.

    Canada is the largest international tourism market for the United States. In 2011, Canadians made an estimated 21 million trips to the U.S. and spent approximately $24 billion.

    Real estate investment will not be required to obtain a Visa.

    While the CSA remains optimistic, we would like to emphasize that the bill has only just been introduced. The bill must go through committees before it is brought to the floor for a vote.

  12. @calgary411,
    re; “Canada is the largest international tourism market for the United States. In 2011, Canadians made an estimated 21 million trips to the U.S. and spent approximately $24 billion”

    And, how many of those 21 million trips won’t be made due to FATCA,
    and the US insistence that we can’t use our Canadian ones? I can think of some households now who are not doing any cross-border shopping, and who may never go to the US again. Even a family who are only Canadian, with a US resident family member via marriage, have divested themselves of US property, and their stays are shorter.

  13. I was referring to the US insisting that dual Canadians with US status must use US passport to enter and leave. And hassling Canadians with a US birthplace. How many trips will be curtailed? If a family has 4 Canadians, but 1 also hasn’t been able to renounce, then that Canadian family isn’t going to Disneyworld or Las Vegas or New York City.

    Maybe someone should point that out to Schumer.

  14. Count us among the not going to the USA group. My husband has one more trip of necessity to Mordor across the border and then that’s it. We’re also looking at labels. If it’s made in the USA it goes back on the shelf whenever possible. Thank goodness for China or we’d hardly be buying anything. Of course we’ll buy things made in Canada but those are rare finds. Canada needs to work out something with Turks and Caicos so our Canadian sun seekers have a safe haven to fly to when their Vitamin D levels are at winter lows.
    http://www.journalinteret.com/politique/turks-and-caicos-the-eleventh-province/

  15. @Em,
    A Canadian alliance of some kind with Turks and Caicos? The things we’ve never heard of!

    And there is always Cuba. Worth a trip, and with a CLN, extra satisfying to exercise the option to visit, in opposition to the US ban on US citizens travelling there.

  16. Once heard a Mayor of a medium sized city talk about his success in attracting business to the town. What he said was that he would get ALL departments that might be affected by the proposed business in one place at one time to discuss.

    The problem here is that one part of Form Nation is not paying attention to the other. It’s pretty obvious that because of the tax problems that this initiative:

    1. Will not attract more snowbirds; and

    2. Will create enough bad publicity to actually reduce the number of snowbirds who will want to risk going there.

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