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Expat Tax

What is Abode Test?

An IRS requirement that your tax home and abode be in a foreign country to claim the Foreign Earned Income Exclusion.

Definition

The abode test is an additional requirement for claiming the Foreign Earned Income Exclusion. Even if you meet the physical presence or bona fide residence test, you cannot claim the FEIE if your abode is in the United States. Your abode is your home, habitation, residence, or place of dwelling—essentially where your personal, economic, and family connections are. If the IRS determines your abode remained in the US despite time spent abroad, the FEIE may be denied.

Who Needs to Know This?

US expats claiming the Foreign Earned Income Exclusion who need to demonstrate their abode is in a foreign country, not the United States.

Key Deadline

N/A - this is a qualification requirement for FEIE

Potential Penalties

N/A, but failing the abode test disqualifies you from the FEIE

Related Forms

Form 2555

Common Mistakes to Avoid

  • 1Maintaining a US home while claiming FEIE
  • 2Having strong personal and family ties to the US that establish a US abode
  • 3Confusing the abode test with the tax home requirement
  • 4Not documenting the establishment of a foreign abode

Related Terms

HA

Harsh Agarwal, EA · IRS Enrolled Agent

Reviewed for accuracy by Zenith Financial Advisors

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