If I live abroad for 330 days do I automatically qualify for the foreign income exclusion?

To put it shortly, no. Although residing overseas for 330 days is a requirement, there are other factors that help determine if you qualify for the foreign income exclusion.

Physical Presence Test

As its name suggests, the Physical Presence Test helps the IRS determine if you are actually a qualifying expat. The 330 Day Rule requires that you live 330 full days in a foreign country within a rolling 12 month period.

In addition, you must be able to prove you have a foreign tax home. While there are other qualifications and restrictions, the physical presence test helps determine if you have personal, social, and economic ties in your foreign jurisdiction.

Note: The foreign earned income exclusion does not apply to the wages of military and civilian employees of the U.S. government.

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