Navigating the New U.S. Registration Requirement: What Canadian Travelers Need to Know
Starting April 11, 2025, under President Trump’s “Protecting the American People Against Invasion” executive order, Canadians staying in the U.S. for over 30 days must complete an online registration with U.S. Citizenship and Immigration Services (USCIS). This process may include submitting biometric information, particularly for those who have not previously provided fingerprints during visa applications. Those entering by air with an I-94 admission record are currently exempt (however this could change quickly), but land travelers who do not receive one must register. Failure to comply can lead to hefty fines or even legal penalties. For those who wish to verify if they’ve been issued an electronic I-94 admission record (which acts as an exemption from the new registration requirement), it is recommended to go to https://i94.cbp.dhs.gov/home and select “Get Most Recent I-94” to verify.
From a cross-border planning perspective, this change could impact Canada / U.S. tax residency considerations, healthcare planning, and even real estate decisions. The IRS uses the Substantial Presence Test (SPT) to determine if a Canadian (non-U.S. citizen, non-Green Card holder) is considered a U.S. tax resident, which can have significant tax consequences. With the new registration system, border authorities may have more precise data on how long Canadians stay in the U.S., increasing the need for careful recordkeeping to avoid unintended tax liabilities.
Tax residency is crucial because it dictates where and how much tax an individual owes. If a Canadian meets the SPT, they may be subject to U.S. income tax on their worldwide earnings, rather than just on their U.S.-sourced income. This could lead to double taxation issues, requiring the need for foreign tax credits or tax treaties to mitigate financial losses. Additionally, U.S. tax residency may trigger estate tax implications, which can significantly affect inheritance planning and asset distribution.
Healthcare access is another important consideration. Canadian snowbirds who unintentionally become U.S. tax residents may face complications regarding their provincial health coverage back home. Some provinces require residents to be in Canada for a certain number of days to maintain coverage, and an extended stay in the U.S. could jeopardize access to publicly funded healthcare. Understanding these nuances can prevent costly medical expenses and disruptions in coverage.
For our clients, this means revisiting their travel plans and financial strategies. It’s crucial to document time spent in the U.S., stay informed on compliance rules, and, if necessary, consult with cross-border tax and legal experts. If you’re a Canadian spending extended time in the U.S. or considering a cross-border move, now is the time to ensure you’re prepared for these new regulations.
