What is Physical Presence Test?
IRS test requiring 330 full days of physical presence in a foreign country during a 12-month period to qualify for the Foreign Earned Income Exclusion.
Definition
The Physical Presence Test is one of two tests (along with the Bona Fide Residence Test) that US citizens and resident aliens can use to qualify for the Foreign Earned Income Exclusion (FEIE). 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 330 days do not need to be consecutive, and the 12-month period can begin on any day.
Who Needs to Know This?
US citizens and resident aliens working abroad who want to claim the Foreign Earned Income Exclusion but don't meet the Bona Fide Residence Test requirements.
Key Deadline
Claimed on annual tax return with Form 2555
Potential Penalties
N/A - this is a qualification test for benefits
Related Forms
Common Mistakes to Avoid
- 1Counting partial days as full days (only full 24-hour days count)
- 2Not keeping detailed travel records to prove presence
- 3Including time spent in international waters or airspace
- 4Confusing the 12-month period with the calendar year
Related Terms
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