U.S. citizens or resident aliens with a tax home in a foreign country may be eligible for foreign income tax exclusions of up to $80,000 designed to prevent them from having to pay income tax to the United States in addition to the country where they currently live. One way to qualify for this type of tax exclusion is to meet the qualifications for the physical presence test.
You can qualify under the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. Here is a detailed explanation of the requirements:
Yes. However, if any part of travel is not in a foreign country and takes more than 24 hours, then you will lose full days.
The physical presence test is based only on how long you stay in a foreign country or countries. Unlike the bona fide residence test, this test does not depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad.
You do not meet the physical presence test if illness, family problems, a vacation, or your employer's orders cause you to be present for less than the required amount of time. However, you may still qualify if you fall under one of the IRS's exceptions.
If you have questions about the physical presence test and how it may apply to you, it may be necessary to contact a tax attorney. Consulting with an attorney when questions and issues arise could save you a lot of money in taxes.
Last Modified: 06-19-2018 08:22 PM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.