CLOSER CONNECTION US FORM 8840-FOR CANADIAN’s in the USA over 183 DAYS over 3 years
Last Updated: Jully 31, 2026
If you are a Canadian and even if you do NOT have any US income, but have spent over 183 days in the USA when you count the current year 2026, 1/3 of days in 2025 and 1/6 of days in 2024, and if you spent less than 183 days in the current year, then file US Form 8840 to avoid being taxed by the IRS on your world-wide income.
This Form will determine where an individual’s main personal and business activities take place. The IRS will determine this by considering the following factors included on the Form:
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Where the individual has a permanent home and keeps their personal belongings
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Where the individual’s family lives
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Where the individual’s bank and investment accounts are located
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Where the individual’s principal income earning activities take place
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Where the individual’s driver’s licence in held
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Where the individual’s social, political, cultural or religious activity takes place
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Where the individual is registered to vote
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The country the individual lists as his residence when completing official documents
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The country the individual is covered by a health plan
If the Canadian taxpayer meets the Closer Connection exception to the Physical Presence Test, then this must be filed with the IRS by June 15th each year to establish the claim to non-US residency by virtue of the exceptions.
My advice would be to have this Form filed annually if you are in the USA for 183 days or more over the three years average, as discussed above. You are not on the IRS’ hot list if you file this Form. However, you do not want to receive a letter that you did not file US tax returns or other banking and information returns because of your deemed presence in the USA. Filing Form 8840 will eliminate this risk.
The above information is of a general nature only and should not be relied upon for specific situations. Call Marlies Y Hendricks, CPA at 416-766-3941 to discuss your best options and set up an appointment.
