FAQs
Q

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

Q

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

A

To put it shortly, no. Although the 330 Day Rule 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 says you must live that many full days in another country within 12 months.

In addition, you must be able to prove you have a foreign tax home and no U.S. abode. 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.

For example, it is rare for U.S. contractors working on American military bases abroad to qualify for the foreign earned income exclusion.

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