Terry Ritchie and Kris Rossignoli, partners at Cardinal Point Wealth Management, have been prominently featured in a recent Globe and Mail article titled “An important cross-border tax-filing deadline is approaching. Here’s what you need to know.” This insightful article delves into the complexities and critical deadlines that U.S. citizens and Canadian snowbirds must know when managing their tax responsibilities across borders.
The article highlights a key point: while Americans typically file their tax returns by April 15, those living abroad, including in Canada, benefit from an automatic two-month extension, making their deadline June 17 this year. For those needing even more time, a further extension to October 15 can be requested by filing IRS Form 4868. However, it is crucial to note that any taxes owed were still due by April 15 to avoid interest charges.
Ritchie and Rossignoli emphasize the importance of understanding these deadlines and the various forms required for U.S. citizens residing in Canada. These include IRS Form 2555 for the Foreign Earned Income Exclusion, IRS Form 1116 for foreign tax credits, and IRS Form 8938 for reporting specified foreign financial assets. They also shed light on the substantial presence test and its implications for Canadian snowbirds who spend significant time in the U.S., advising on filing IRS Form 8840 to avoid being considered a U.S. resident for tax purposes.
For a more detailed exploration of these critical tax-filing considerations, read the full article in the Globe and Mail featuring Terry Ritchie and Kris Rossignoli.
