Canadian retirees heading south for the winter now face an additional layer of paperwork and potential penalties under a new U.S. Department of Homeland Security rule, on top of existing tax and provincial health coverage rules that already govern how long they can stay away from home.
The DHS finalized its alien registration rule effective June 29, 2026, building on an interim version that took effect in April 2025. Under the rule, anyone staying in the United States for 30 days or more is expected to be registered. Many Canadians who fly into the U.S. are automatically issued an electronic Form I-94 arrival record, which counts as registration, but those who drive across a land border generally are not issued one and must check the I-94 website run by U.S. Customs and Border Protection to confirm their status.
If no record appears, travellers must file Form G-325R online through U.S. Citizenship and Immigration Services after entering the country and before the 30-day mark. There is no fee, and those who register this way do not need to be fingerprinted. Admission through trusted traveller programs such as NEXUS, SENTRI, FAST or Global Entry also counts as evidence of registration, though only if the card was actually used at a lane or kiosk during the traveller’s most recent entry.
Willfully failing to register can bring a fine of up to US$5,000, up to six months in jail, or both, according to the federal rule. Separately, registered visitors aged 18 and older must carry proof of registration at all times, with failure to do so carrying a fine of up to US$5,000, 30 days in jail, or both. The Government of Canada’s travel advice for the United States notes that border agents have significant discretion over entry and that enforcement of entry requirements is strict, with travellers denied entry potentially facing detention while awaiting deportation.
Tax Residency Is a Separate Clock
Registration is an immigration matter, but it does not settle questions of taxation. The IRS uses a substantial presence test to determine whether someone is treated as a U.S. tax resident, counting all days present in the current year, one-third of the days from the prior year and one-sixth of the days from the year before that. Under the IRS’s own example, someone spending 120 days a year in the U.S. for three straight years totals 180 days — just three days short of the threshold that would trigger tax residency.
Canadians who meet the test can claim a “closer connection” exception by filing Form 8840, provided they spent fewer than 183 days in the U.S. that year, kept their tax home in Canada all year, maintained closer ties to Canada than the U.S., and have not taken steps toward U.S. permanent residence. The form must be filed on time or the exception cannot be claimed.
Kim Moody, CEO of Moodys Tax in Calgary, told BNN Bloomberg that snowbirds should stay current on their U.S. filings and warned that overstaying carries its own risk. “If you spend too much time in the States without proper immigration status, you’re considered to be an illegal alien,” Moody said. Penalties for overstaying include a three-year bar on re-entry after more than 180 days of unlawful presence, or a 10-year bar after a year or more, both taking effect once the traveller leaves the U.S.
Privacy and Health Coverage Considerations
Form 8840 requires snowbirds to disclose details including their permanent home, family ties, the country that issued their driver’s licence, their voter registration and organizational memberships in order to prove closer ties to Canada. Banking information can also cross the border: under a 2014 agreement tied to the U.S. Foreign Account Tax Compliance Act, Canadian banks report accounts held by “U.S. persons” to the Canada Revenue Agency, which shares the information with the IRS annually. According to BMO, that designation is not limited to U.S. citizens and can include people who spend considerable time in the U.S., with banks reviewing details such as mailing addresses to make that determination.
Daniel Therrien, then Canada’s privacy commissioner, told a parliamentary committee in 2016 that the reporting rules should not be applied too broadly, and his office said as recently as 2021 that it had consistently recommended the CRA notify individuals when their data is shared with the IRS. Canadians can request in writing whether their account information has been shared.
A third timeline applies to provincial health coverage. In Ontario, residents who have lived in the province for more than six months can be away for up to 212 days in any 12-month period while keeping their Ontario Health Insurance Plan coverage intact.
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