Canadians in the Northern Hills
Canadians come to Spearfish to study at Black Hills State, to visit the Black Hills on long road trips, to buy cabins and homes, and sometimes to retire. Each of these brings U.S. and Canadian filing questions. BOMCAS is based in Edmonton and prepares returns on both sides of the border.
Treaty and residency basics are explained on our South Dakota Canada–U.S. page; below they are applied to students, property owners, long-stay visitors and retirees in Spearfish.
Students and Athletes
Canadian students at Black Hills State on F-1 visas are usually exempt individuals for the substantial presence test, file Form 8843 each year and file Form 1040-NR if they have U.S. income such as campus wages or taxable scholarships. Athletic scholarships covering room and board are usually partly taxable. In Canada, students often remain residents and file Canadian returns, claiming tuition credits where available.
Canadian Owners of Black Hills Property
Canadians who own a cabin or home near Spearfish and rent it out, even for a few weeks, should file Form 1040-NR to report rental income and can elect to be taxed on net income. Short-term rentals need a South Dakota sales tax licence and collect sales, gross receipts, tourism and, from 2027, county tax. When the property is sold, FIRPTA withholding usually applies, and the sale is reported in Canada with credit for U.S. tax. U.S. rental property may need to be included on Form T1135.
Long Stays and Day Counts
Canadians who spend long periods in the Black Hills should count their days. Under the substantial presence test, someone present on 183 or more weighted days over three years can become a U.S. resident for tax purposes unless they file Form 8840 to claim a closer connection to Canada, or rely on the treaty. Staying long enough may also affect health coverage and immigration status, so the number of days matters for more than tax.
Retiring to Spearfish
Canadians who retire to Spearfish become U.S. residents for tax purposes, face Canadian departure tax on certain assets and must report RRSPs, RRIFs and TFSAs correctly in the U.S. Under the treaty, Canada Pension Plan and Old Age Security are taxed like U.S. social security, while RRSP and RRIF withdrawals face Canadian withholding.
Former Canadians and Dual Citizens
Spearfish residents who are dual citizens or once lived in Canada often still have Canadian accounts. U.S. persons with foreign accounts totalling more than $10,000 file an FBAR, and Form 8938 may apply. TFSAs and Canadian mutual funds can raise additional U.S. reporting questions.
Canadian Businesses and Workers
Canadian firms supplying or working on Spearfish projects earn U.S.-source income for work done here. With Form W-8BEN-E and no permanent establishment, a Canadian company can usually avoid U.S. tax on business profits, though long projects should be reviewed under the treaty.
Canadian Visitors Who Work Remotely
Canadians on long Black Hills stays sometimes keep working remotely for their Canadian employer. As visitors, they are generally not authorised to work for a U.S. employer, and their Canadian wages usually remain taxable only in Canada under the treaty if they stay below 183 days in a 12-month period and the employer has no U.S. permanent establishment bearing the cost. Longer stays should be reviewed before they happen.
What We Prepare
- U.S. resident and nonresident returns.
- Canadian personal returns, including departure years.
- Forms 8843 and 8840.
- FBAR and Form 8938.
- Form T1135.
Spearfish Cross-Border Tax Questions
I am Canadian and spend summers in Spearfish. Could I become a U.S. tax resident?
Possibly, if your weighted days reach 183 under the substantial presence test. Filing Form 8840 or using the treaty can usually prevent this.
Do Canadian students at Black Hills State file U.S. returns?
Most file Form 8843 each year and Form 1040-NR if they have U.S. income.
I own a cabin near Spearfish and rent it out. What do I file?
Form 1040-NR for the rental income, a South Dakota sales tax licence for short stays and reporting on your Canadian return.
Is my CPP taxable in the U.S. if I retire in Spearfish?
Yes, but under the treaty it is taxed like U.S. social security, so only part may be taxable.
Talk to BOMCAS About Cross-Border Tax in Spearfish
The U.S. filing may be a personal return or a business return. Canadian cabin owners need sales tax registration for short stays, and a new U.S. business needs bookkeeping and payroll. Plan before a move, and use late filing for missed years. Businesses that operate in other parts of South Dakota can use our state guides on business taxes, personal taxes, sales and use tax, bookkeeping, payroll, tax planning and late filing, which all start from the South Dakota overview.
Let BOMCAS know about your Spearfish business or household and we will reply with next steps and the information we need for a quote. Reach us through the contact page or the form below, at 780-667-5250 or by email at info@bomcas.ca. All Spearfish services are gathered on the Spearfish overview. This page is general information and not advice for your situation.