Tax Filing for Dual Citizens

Image of Canadian and American passports

With the United States as our neighbour, many of us participate in business in both countries.  This also often means that many of us are dual citizens, being Canadian and American. But how do we file our taxes when this is the case?

  1. If you are working in the US, every day you spend in the States for the first year is considered having spent one sixth of a day there. In the second year every day spent will be considered one third of a day, and in the third year each day will be equivalent.
  2. If you exceed having spent 183 days in the period of three years, with not having spent less than 31 days in the current calendar year, then you will be considered a US resident for tax purposes.
  3. If you spend less, then you are considered a Canadian resident for tax purposes, and you must file with consideration to the days you spent in the US.

If uncertain, make sure to reach out to an accountant. We can clarify where you should be filing your taxes. It’s almost important you keep track of which days you’ve spent in the US for work purposes.