Canadian Cross-Border & Expat Tax
Pick your scenario. All four cross-border situations have distinct Canadian and US tax consequences, forms, and deadlines.
Choose your calculator
Decision tree
| Your situation | Calculator | Key forms |
|---|---|---|
| Permanently leaving Canada | Departure Tax | T1161, T1243, T1244 |
| US citizen resident in Canada | Dual-Filer | 1040, 1116, FBAR (FinCEN 114), 8938 |
| Canadian spending winters in the US (snowbird) | SPT | 8840 (if < 183 current-year US days) or 8833 + 1040-NR |
| Canadian returning home after years abroad | Cross-Border Tax | NR74 (residency determination), final non-resident return |
The Canada-US Tax Treaty
The Canada-US Tax Treaty (1980, with five protocols through 2007) provides the framework for the FTC, RRSP deferral, residency tiebreaker, and reduced withholding rates on cross-border income. Article IV (residency tiebreaker), Article XVIII (pensions and RRSPs), and Article XXIV (Foreign Tax Credit) are the most-cited articles for individual cross-border filers.
When to engage a cross-border accountant
Always in year 1 of any new cross-border situation. Particularly when filing Form 8833 (treaty tiebreaker), Form 5471 (foreign corporations owned), Form 3520 (foreign trust reporting, including RESP and TFSA in some interpretations), or any year where current-year US days exceed 183. The cost is typically CAD 1,500–5,000 for a year-1 dual-filing engagement and may be deductible as a tax-preparation expense.
Frequently asked questions
What are the main Canadian cross-border tax scenarios?
Four scenarios dominate cross-border tax planning for Canadian residents: (1) leaving Canada permanently — departure tax under s.128.1(4); (2) US citizen living in Canada — dual filing with FTC; (3) Canadian spending winters in the US — Substantial Presence Test and Form 8840; (4) Canadian returning home after years abroad — re-establishment year. Each has distinct forms, deadlines, and treaty interactions.
Does the Canada-US Tax Treaty prevent double taxation?
Mostly, yes. Article XXIV (FTC) credits tax paid in one country against tax owed in the other. Article XVIII protects RRSP/RRIF deferral. Article IV breaks ties when both countries claim residency. But the treaty does not relieve you from the filing obligation in either country — US citizens in Canada must still file the 1040 every year, and Canadians who meet the SPT must still file Form 8840 or 1040-NR even if no US tax is owed.