Determining U.S. tax residency is only the starting point in advising individuals with Canada-U.S. connections. The more difficult issues arise when domestic U.S. residency rules conflict with treaty residence, an individual changes status during the year, or an election could significantly alter the tax result.

By the end of this course, participants will be able to:

• Determine whether an individual is a U.S. resident, non-resident or dual-status taxpayer in more complex fact patterns.
• Distinguish between U.S. domestic-law residency and treaty residence.
• Apply the Canada-U.S. Tax Convention tie-breaker rules to dual-resident individuals.
• Identify the tax and filing consequences of residency commencement and termination.
• Evaluate the availability and implications of common residency elections.
• Recognize planning opportunities and common compliance risks arising from a change in residency status.
• Identify situations requiring treaty disclosure, closer-connection filings or additional information reporting.

Module 1 — Advanced Residency Determination and Exceptions
This module provides a concise review of the domestic residency framework and concentrates on issues that commonly create errors in practice.

Topics

• Green Card Test and continuing residency exposure
• Substantial Presence Test in multi-year situations
• Correct application of the weighted-day formula
• Exempt individuals and excluded days
• Medical condition exception
• Closer Connection Exception
• Form 8840 filing requirements and late-filing concerns
• Residency consequences of an expired visa, abandoned green card or extended U.S. stay
• Difference between immigration status and income tax residency
• Documentation and evidence supporting a residency position

Module 2 — Treaty Residence and Dual-Resident Individuals
This module examines situations in which an individual is resident in both Canada and the United States under domestic law.

Topics

• Residence under Canadian and U.S. domestic law
• Purpose and structure of the treaty tie-breaker rules
• Permanent home
• Centre of vital interests
• Habitual abode
• Nationality
• Competent authority procedure
• Claiming non-resident treatment under the treaty
• Form 8833 disclosure considerations
• Interaction between treaty residence and U.S. filing obligations
• Impact on foreign information reporting
• Risks of taking inconsistent positions in Canada and the United States

Module 3 — Dual-Status Years, Residency Starting Dates and Elections
This module addresses individuals who become or cease to be U.S. residents during the year and the elections that may change their filing status or tax result.

Topics

• When dual-status treatment arises
• Residency starting date
• Residency termination date
• First and last day of U.S. presence rules
• De minimis presence rules
• Allocation of income between resident and non-resident periods
• Effect on deductions, exemptions, filing status and tax rates
• Dual-status return preparation considerations
• First-Year Choice election
• Section 6013(g) election
• Section 6013(h) election
• Joint-return elections involving a non-resident spouse
• Advantages and disadvantages of electing full-year residence
• Worldwide income and information-reporting consequences
• Revocation and continuing effect of elections
• Coordination with Canadian departure or arrival rules

This module brings together residency determination, treaty analysis, elections and compliance consequences.

Topics

• Timing a move into or out of the United States
• Managing days of presence before year-end
• Treaty-based filing versus closer-connection filing
• Green card abandonment and tax residency termination
• Worldwide income reporting during resident periods
• Foreign tax credit considerations
• Treatment of Canadian employment, investment and rental income
• RRSP, TFSA and other Canadian account considerations
• Potential exposure to FBAR and foreign information returns
• Common errors involving Forms 1040, 1040-NR, 8840 and 8833
• Failure to identify a dual-status year
• Incorrect use of full-year resident filing
• Missed elections and late elections
• Inconsistent Canadian and U.S. residency positions
• Practitioner documentation and engagement-scope considerations

Participants will leave the course better able to:

• Separate domestic-law residence from treaty residence.
• Identify when dual-status treatment applies.
• Compare available residency elections.
• Recognize the broader reporting consequences of becoming a U.S. resident.
• Avoid common filing and planning errors.
• Advise clients before a move or extended U.S. stay, rather than after the tax consequences have already arisen.

Course Content Created: September 2026

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About This Product

CPABC On-Demand Courses offer self-paced learning through recorded sessions from previously delivered live seminars. Where available, accompanying materials such as handouts or course notes are included. On-demand courses are eligible for verifiable CPD hours upon successful completion, and a certificate will be made available for download for your records.

Please note that not all on-demand courses include downloadable materials such as handouts, course notes or presentation slides.

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