To be eligible to claim the foreign earned income exclusion or the foreign housing exclusion
or deduction, you must have a tax home in a foreign country and meet either the bona fide residence
test or the physical presence test.
The bona fide residence test can be used by U.S. resident aliens who are citizens
or nationals of a country with which the United States has an income tax treaty with an
applicable nondiscrimination clause and U.S. citizens.
You must be a bona fide resident of a foreign country or countries for an uninterrupted period
that includes an entire tax year. The characteristics usually qualifying you as a bona fide
resident include establishing a home and settling in that country with some degree of permanence.
The physical presence test can be used by any U.S. citizen or resident alien. You must be
physically present in a foreign country or countries for at least 330 full days during any period of
12 consecutive months. The 12-month period can begin with any day of any calendar month.
If you violate U.S. restrictions that prohibit travel to certain countries, you will not be
able to count your presence or residence in those countries in meeting the bona fide residence test
or the physical presence test.
Generally, your tax home is the general area of your main place of business or post of duty,
regardless of where you maintain your family home. If you do not have a regular or main place
of business
because of the nature of your work, then your tax home may be the place where you
regularly live. You are not considered to have a tax home in a foreign country for any period
for which your household is in the United States. However, if you are temporarily present in
the United States, it does not necessarily mean that your household is in the United States
during that time.
You qualify for the foreign earned income exclusion only if your tax home is in a foreign
country throughout your period of residence or your 330 days of physical presence. For more
information on these topics, select Topics 853 and
855. Publication 54,
Tax Guide for U.S. Citizens and Resident Aliens Abroad, contains detailed information
on the foreign earned income exclusion and other related topics. Publications can be
downloaded from this site,
or ordered by calling 1-800-829-3676.
You qualify for the foreign earned income exclusion only if your tax home is
in a foreign country throughout your period of residence or your 330 days of physical
presence. For more information on these topics see Topic 853
and Topic 855. Publication 54,
Tax Guide for U.S. Citizens and Resident Aliens Abroad, contains detailed
information on the foreign earned income exclusion and other related areas.
If the information you need relating to this topic is not addressed in Publication 54,
you may call the IRS National Office hotline at (202) 874-1460. This is not a
toll-free number. Publications can be downloaded from this site
or ordered by calling 1-800-829-3676.
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