Canadian Snowbird Act: Bill Offers 240-Day U.S. Stays for 50+ Canadians, Clarifies 'Nonresident Alien' Tax Status

If you're a Canadian citizen dreaming of longer, sunnier escapes south of the border, a new piece of legislation called the "Canadian Snowbird Act" might be on your radar. This bill aims to amend U.S. immigration law to formally allow Canadian citizens aged 50 and over to stay in the U.S. for up to 240 days within a single 365-day period. The core idea? To provide a clear pathway for these extended stays, provided folks meet certain conditions like maintaining a home in Canada and having a place to stay in the U.S.

Longer Stays, Clearer Rules: What's Changing for Canadian Visitors?

The bill proposes changes to Section 214 of the Immigration and Nationality Act, basically carving out a new visitor category. To qualify for this extended 240-day visit, a Canadian citizen would need to be at least 50 years old, maintain their primary residence in Canada, and either own a residence in the U.S. or have a rental agreement for the duration of their stay. Good news for couples: the bill states that the spouse of a qualified Canadian retiree can also be admitted under similar terms, though they wouldn't independently need to own or rent a U.S. property.

Importantly, Section 2 of the bill clarifies that owning a U.S. residence under this provision won't be taken as a sign that you intend to abandon your Canadian home base. And, as with any entry to the U.S., individuals would still need to be considered admissible under existing immigration law (Section 212 of the INA) and not be deportable for other reasons (Section 237 of the INA). That 240-day clock, by the way, only ticks when you're actually in the U.S.; any time spent outside the country during that 365-day period doesn't count towards your limit.

The Nitty-Gritty: Work, Benefits, and Staying Legal

While the bill opens the door for longer stays, it comes with some important conditions. A key one, outlined in Section 2, is that these Canadian visitors generally cannot work in the United States. There's a specific exception: if you're already employed by a non-U.S. based company that you worked for in Canada, you may be able to continue that work while in the U.S. Think remote work for your Canadian employer, not picking up a new job stateside.

Another crucial point is access to public benefits. The bill explicitly states that individuals admitted under this new category will not be eligible to seek benefits under Section 403(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (also cited as 8 U.S.C. 1613(a)). In simpler terms, this means these visitors won't be able to access certain federal means-tested public assistance programs. This is a common stipulation for many temporary visitor statuses, ensuring that the stay is self-supported.

Tax Talk: Keeping it Clear with Uncle Sam

Perhaps one of the most practical aspects for potential snowbirds is how this affects U.S. taxes. Section 3 of the bill proposes an amendment to the Internal Revenue Code (specifically section 7701(b)(1)(B)) to ensure that Canadian citizens admitted under these new provisions (which the bill refers to as being described in a new section 214(s) of the Immigration and Nationality Act) are treated as "nonresident aliens" for U.S. tax purposes.

Why does this matter? Generally, nonresident aliens are only taxed by the U.S. on income they earn from U.S. sources. Without this clarification, spending up to 240 days in the U.S. could potentially trigger the "substantial presence test," which might classify someone as a U.S. resident for tax purposes, meaning they'd be liable for U.S. taxes on their worldwide income. This bill aims to prevent that scenario, offering some tax clarity for those taking advantage of the longer stays.