What is the Physical Presence Test?

The Physical Presence Test is one of two tests you can use to qualify for the Foreign Earned Income Exclusion (FEIE) and Foreign Housing Exclusion. To pass this test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period. The 12-month period does not have to align with the calendar year — it can be any consecutive 12-month period that you choose.

The 330-day requirement means full 24-hour days, counted from midnight to midnight. Days spent traveling between foreign countries count, but days spent traveling between a foreign country and the United States do not. The day you depart the US counts as a US day, and the day you arrive in the US counts as a US day. However, the day you depart the US for a foreign country can count as a foreign day, and vice versa, depending on the time spent.

This means you can spend up to 35 days in the US (or in transit to/from the US) during the 12-month period and still meet the test. Many expats carefully track their travel days to ensure they do not exceed this limit. Brief stops in the US for vacation, family visits, or business are fine as long as the total does not exceed 35 days.

The test is purely mechanical — it does not matter why you are in the foreign country or what your intentions are regarding permanent residence. This makes it more straightforward than the Bona Fide Residence Test, which requires evaluating the nature of your stay. However, you must still have your tax home in a foreign country, meaning your main place of business or employment must be abroad.

If you are planning your travel schedule to meet the Physical Presence Test, keep detailed records of all travel, including flight itineraries, passport stamps, boarding passes, and hotel receipts. The IRS may request documentation to verify your physical presence in a foreign country.