What is Tax Home?
The general area of your main place of business or work, regardless of where you maintain your family home.
Definition
For tax purposes, your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. If you don't have a regular place of business, your tax home is the place where you regularly live. Having a tax home in a foreign country is a requirement for the Foreign Earned Income Exclusion. If you have no fixed place of business or residence, you may be considered an 'itinerant' with no tax home.
Who Needs to Know This?
US expats claiming the Foreign Earned Income Exclusion (must have tax home in foreign country), and business travelers claiming travel expense deductions.
Key Deadline
N/A - this is a status determination
Potential Penalties
N/A - but failing to establish foreign tax home disqualifies FEIE
Related Forms
Common Mistakes to Avoid
- 1Assuming tax home is where your family lives
- 2Not establishing tax home in foreign country for FEIE
- 3Digital nomads failing to establish any tax home
- 4Confusing tax home with domicile for state tax purposes
Related Terms
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