What happens if a Canadian overstays in USA?

According to research, visa overstays are now a bigger driver of undocumented immigrants than undocumented border crossings. Do you know what happens if a Canadian overstays in the USA? Well, in this article we will discuss it.

Visitors who remain in the country for more than 180 days face a three-year suspension, and any who stay for more than a year face a ten-year ban. Many that go beyond their quota by a few days or weeks can be denied access to the United States as they attempt to return.

Reasons which can declare you as an Illegal Resident of the US

  • Visiting the US very frequently.
  • You stay for a few months over there every year.
  • You should not spend more than 182 days in the stateside.

To inform and protect you against the hazards of overstaying in the US, you must consider 7 important factors to understand what happens if a Canadian overstays in the USA.

US Immigration Rules

US immigration rules are both strict and straightforward. The US immigration rules state that:

  • If you stay in the US for more than 182
  • If you are a Canadian

You will become an illegal resident of the US. Then you will not be able to enter the US for 3 to 10 years. And, You will also not be able to enter your own native Canadian Residency. It will affect your health care and coverage.

US Tax Rules

You want to understand the rules of tax in the US and how they apply to your US visits if you want to prevent US tax payouts. Although the US tax rules are very complex. You will be a US resident if:

  • You stay in the US for a longer period.
  • This means that you need to pay tax to the IRS on your worldwide income.

You don’t need to count the number of days for a year for the tax payment according to the US immigration Tax rules.  The time spent in the US according to the last 3 years forms the basis of this count. This is the time when the substantial presence test comes into being.

Procedure for Substantial Presence Test

If a Canadian is spending too many days in the US for tax purposes this substantial presence test works. This is a formula that you can use to count the number of extra days you are spending over there.

Over three years, you can count the number of days you spent in the US according to the substantial presence test. This also includes the current calendar year and the previous two calendar years.

Formula:

  • You need to add all the years and time you spent in the US in the current calendar. Then you need to add one-third of the days you spent in the US from last year. 1/6 of the days you spent in the US in the year previous to last year.

If after doing this substantial presence test your add up comes to 183 days. You will have to pay tax, under the IRS, if you meet the criteria of paying tax as a resident in the current year.

➡LEARN MORE: How to Immigrate to Canada without a Job Offer?

Calculator to help

The Handy tool which is the substantial presence test calculator will determine your status. If you do not want to do the maths or if you are not sure whether whatever you have calculated is correct or not.

Plan B

You might avoid paying taxes if you meet the substantial presence test criteria of 182 days if your tires are closer to Canada than the US. An exception to the substantial presence test formula is the closer connection with which you can prove that your connection with Canada is stronger than the US.

By proving this even if you meet the criteria of 182 days according to the substantial presence test you will not be eligible to pay tax in the US. Whether you qualify for this exception or not but US Government takes care of that based on several factors like:

  • Where your family and home are in Canada?
  • Whether you stay there or not for a longer period?.

Failure to qualify the Closer Connection Exception

Under the Canada-US tax treaty, you will not be eligible for tax payment under the US land even if you are not eligible under the closer connection exception. To prevent double taxation of Canadian taxpayers is the main goal of this feature.

Therefore some tie-breaker factors were set up to determine whether you are eligible to pay tax in Canada or the US.

Border Crossing Online Tracking

Both Canada and the US provide information about when you enter and leave each country and even the Canada border Patrol provides online access to a report of a border crossing.

Therefore you should not worry even if you do not keep track of your travel history or the number of days you spent in the US over the last few months or years. To get the details you just need your passport ready. The user needs to enter some details from it. Your travel border crossing history will be in front of you.

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