The two month extension for Canadian snowbirds is back in the news. No mention of the cons in the article itself but plenty of commenters made note of the Medicare and IRS tax issues that staying an extra two months in the US every year can cause retirees.
What’s more interesting to me about the so-called “Gang of Eights” stab at fixing US immigration issues are the things they are hiding in the bill that will affect border crossings and the intense lobbying of foreign countries trying to get some preferred status for their people tucked away in the fine print of the bill. Everyone wants to go to Amerika.
Chuck Schumer would like nothing more than to feast on the plump snowbird, now that it appears he’s come to the realization that those who renounce aren’t such easy pickin’s.
And there will be plenty. I am regularly astounded by Canadians who flock south with little to no comprehension of tax law or how they could easily end up USP’s for tax purposes.
I know, most have the 182 day meme stuck in their heads. Even that requires filing with the IRS that most aren’t aware of. If this goes through, it’s going to get ugly. I’m surprised there’s nothing mentioned about the new visa on the Canadian Snowbird Association’s web site. According to some friends who were at the consulate recently to file some papers, they were told that this new visa “isn’t going to happen”.
bubblebustin, there are probably a lot of things in the bill now that won’t make the final cut, but I have to wonder just who is lobbying for this and why.
I chimed in at that Globe and Mail article and now I am “Comrade” Em R. 🙂 Some people will not allow anything to rain on their parade to that Florida sunshine.
American media is doing quite a bit to talk up the “intense lobbying” for visas. E.g. the New York Times put a picture of the South Korean president at the top of their article on this topic, making it seem like her primary purpose in flying halfway around the world was to get more visas, rather than discussing unimportant stuff of no possible relevance whatsoever to the reason why US-S.Korea relations are so close like the security situation with North Korea …
https://www.nytimes.com/2013/05/12/us/politics/tucked-in-immigration-bill-special-deals-for-some.html?smid=tw-share&_r=1&pagewanted=all&
They go on to describe the E-3 as “highly sought special visas for guest workers”, as if folks from Dublin and Seoul are clamouring to come to the US to join Sydneyites as ditch-diggers and maids. Back on planet earth, the reason South Korea is lobbying so heavily for E-3 visas as part of the free trade agreement is so Samsung & Hyundai don’t have to do the H-1B scramble or deal with the L-1 refusal rate when sending skilled professionals & managers to work in the US for a couple of years on rotation …
“azcndnl” (Terry F. Ritchie) commented on the Globe and Mail article recently and referenced his article at the website below. It is a very fair assessment of the extension visa bill.
http://www.advisor.ca/tax/tax-news/should-canadian-snowbirds-live-in-the-u-s-116675
Conclusion: “So when you consider the tax and healthcare implications, the majority of traditional Canadian snowbirds may not benefit from these new provisions.”
Today’s,
Beware of the US “Snowbird Visa TAX BOMB!”
Advisor.ca can’t even get it right:
“Rachkovsky said a major reason for seeking the change is that Canadians who spend the winter in the southern U.S. often complain to his association that after exhausting the 182 days for any calendar year, they were precluded from shorter trips to visit relatives and friends in border states.”
http://www.advisor.ca/news/industry-news/u-s-proposes-letting-snowbirds-stay-longer-116887
Thanks, bubblebustin.
To me, all this sort of reeks of small steps to erase the border, which I hope I never see!
@ bubblebustin
The advisor.ca article I referenced above by Terry F. Ritchie is a better analysis I think. It echoes Roy Berg’s warning.
A NY Times article describes how Canada passed data to the US in a pilot project to determine whether non-US visitors had overstayed their tourist visas. Even if this data is not passed to the IRS, Canadian snowbirds should be on the alert to avoid overstaying their US visits. Article: “U.S. Quietly Monitors Foreigners’ Departures at the Canadian Border”:
http://www.nytimes.com/2013/05/22/us/us-tracked-foreigners-leaving-for-canada.html
No mention of FATCA though this is a Canadian story to warn snowbirds about certain aspects of US taxation.
http://www.news-press.com/story/news/2014/07/05/canadian-visitors-may-face-penalties-soon/12233281/
Laura Ruane, lruane@news-press.com 12:09 a.m. EDT July 5, 2014
…”a new cross-border security program that’s unfolding has Canadian and U.S. agencies automatically sharing entry and exit data, using computer technology and bar codes on passports.
That means Canadians who don’t mind their time carefully are more likely to face tax penalties or even arrests for violating immigration laws..”….
…..”..According to Canadian news accounts, the Canadian government plans to use the data for such varied purposes as catching unemployment insurance cheats, thwarting would-be terrorists and ensuring people ineligible to stay in Canada have left the country.
Canada also aimed to begin collecting information on people exiting by air — something the United States does — by requiring airlines to submit passenger manifest data for outbound international flights.
The cross-border data exchange was to kick in fully Monday. However, the news division of the Canadian Broadcasting Corp. on June 25 reported that deadline would be missed because legislative and regulatory changes needed to be made. No new date was mentioned.
Even further on the back-burner: A proposal to allow older Canadians to stay longer in the States. It passed the U.S. Senate in June of last year. A bill in the U.S. House, however, went to a subcommittee and a year later hasn’t emerged…”……
@Badger
HUH? Something about one third of the days you were there the year before the current year, or one fourth of the days you were present the year before last ……
WHO IN THEIR RIGHT MIND CAN DECIPHER THIS BULLSHIT?
@Polly
Snowbirds are better off going to other countries to spend their winter months… my elders in the family are starting to do that since the dang laws in the US are confusing… who the heck can keep track of this nonsense… US seems to forget… snowbirds spends tons of money when they are on holidays… my family does… I tried to help them figure it out… I got totally confused by it… Someone on this board pointed out an article to help figure it out… I thought I got it until I had to explain it to family… I got more confused… I just told them… head to Cuba… its warm…
@USperson
I don’t know how they can think that anybody could possibly understand what they have written there. You`d need a degree in law to even begin to grasp what they are trying to tell you. Its so absurd!
@Polly
There are many a snowbird who thought that it was 183 days a year, every year, and because the closer connection form and treaty election must be filed in a timely manner, find themselves to be US taxpayers. These folks will want to stay under the radar of Uncle Sam by avoiding the US altogether for awhile.
@Polly & @Bubblebustin
No other country does this to snowbirds… now copycat Canada has hopped on the bus to get a piece of the action. They couldn’t stand up for the US persons on anything but they will do this kind of crap to the snowbirds… If u by accident go over say an hr in the US… that can throw your life into heck to clear up. If its *terrorists* they are looking for… fine… not to be mean… keep track of the prs… why keep track of the citizens… Like we are children that need to be monitored… sick & tired of this police state…
Schumer’s back with the same snowbird trap again, attached to a visa waiver program reform bill
https://www.congress.gov/bill/114th-congress/senate-bill/2091/text
News coverage:
http://votesmart.org/public-statement/1013849/schumer-heller-klobuchar-lee-introduce-legislation-to-modernize-streamline-visa-program-to-grow-international-tourism-in-the-united-states
http://thehill.com/policy/transportation/255441-senate-bill-filed-to-expand-visa-waiver-program