What is Tax Home (Expat Definition)?
Your regular or principal place of business or employment — the location the IRS uses to determine whether you qualify for expat tax benefits like the FEIE.
Definition
For expat tax purposes, your tax home is the general area of your main place of business, employment, or post of duty — regardless of where your family lives. To claim the FEIE, your tax home must be in a foreign country. If you have no regular place of business, your tax home is where you regularly live. You cannot have a foreign tax home if your abode (personal home) is in the United States. This distinction between tax home and abode is one of the most litigated issues in expat taxation.
Who Needs to Know This?
All US citizens and green card holders living outside the US who wish to claim expat-specific tax benefits like the FEIE or Foreign Housing Exclusion.
Key Deadline
Determined annually at the time of filing
Potential Penalties
Failing to establish a foreign tax home disqualifies FEIE and housing exclusion claims, potentially resulting in full US tax liability on foreign income.
Related Forms
Common Mistakes to Avoid
- 1Assuming you qualify just because you live abroad — your abode must also be abroad
- 2Maintaining a US abode (family home) while claiming a foreign tax home
- 3Confusing tax home with domicile or state residency
- 4Not documenting your tax home with lease agreements or employment records
Related Terms
Harsh Agarwal, EA · IRS Enrolled Agent
Reviewed for accuracy by Zenith Financial Advisors
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