Foreign Earned Income & Foreign Earned Income Exclusion
Question: Do I have to meet the 330-day physical presence test or have a valid working resident visa to be eligible for the foreign earned income exclusion?
Answer:
To claim the foreign earned income exclusion and either the foreign housing exclusion or the foreign housing deduction:
- You must have foreign earned income,
- Your tax home must be in a foreign country, and
- You must be one of the following:
- A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
- A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
- A U.S. citizen or resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
U.S. tax law does not specifically require a foreign resident visa or work visa for this purpose, but you should comply with the foreign country's laws.
Additional Information:
- Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
- Form 2555 (PDF), Foreign Earned Income
- Form 2555EZ (PDF), Foreign Earned Income Exclusion
- Publication 514, Foreign Tax Credit for Individuals
- Form 1116 (PDF), Foreign Tax Credit
Category: U.S. Aliens and Citizens Living Abroad
Subcategory: Foreign Earned Income & Foreign Earned Income Exclusion
