What Implications Does Going South Have on Your Canada Taxes?

Snowbirds and Canada tax obligations

While it is really nice to spend our Canadian cold winter months in the beautiful warm climate of the south, it doesn’t mean that you can avoid the Canada tax unfortunately. This is one responsibility that you will need to take with you while basking in the sun.

Your stay away from home has its costs which may influence your tax situation. First and foremost you can’t neglect your obligations to have your taxes filed by the deadline. If you have plans on being away prior to this then before you go it would be best if you met with your Toronto accountant and get your taxes all ready to go before you leave. This can be difficult however, it you are waiting on T4’s or T5 as they often don’t get sent out to the beginning of February. What you can do though, is meet with your tax accountant and give him all the information you have, then forward whatever is missing as it comes in. You will need to advise this expert that you will be away, and make the appropriate arrangements for signing your returns so they can be filed. This won’t be an issue if you are only going to be away for a few weeks, and will be back before tax deadline.


Don’t forget that even if you are spending the majority of your time outside of Canada that if you have maintained residential ties, then you still have your tax filing responsibilities. In case you are not aware of what these “ties” are it may include owning a home here, or perhaps your spouse or a dependant is staying in Canada while you are away. It could even include ownership of personal property like a vehicle and being in possession of a valid Canadian driver’s license, and also being covered by a provincial medical insurance.


Now what you may not be aware of is that even though you are a snowbird, you still have to follow the same rules as any other Canadian resident when it comes to taxes. You will need to report all your income even that from outside of Canada, but you are entitled to the applicable deductions and credits. You also as a qualified resident of Canada still receive your goods and services tax credit.


Be sure to have all of your tax related papers in order so you can see your accountant well before the end of tax season so it is not left to the last minute. We would be happy to assist you with your taxes  here at Toronto Accountant before you leave to enjoy the hot sunny weather.


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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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