Which tests determine eligibility for the foreign earned income exclusion?

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Multiple Choice

Which tests determine eligibility for the foreign earned income exclusion?

To qualify for the foreign earned income exclusion, you must show eligibility under one of two specific tests that focus on your time living abroad. The Bona Fide Residence Test requires you to be a bona fide resident of a foreign country for an uninterrupted period that includes a full tax year. The Physical Presence Test requires you to be physically present in foreign countries for at least 330 full days during a 12-month period. If you meet either test, you can exclude a portion of your foreign earned income, subject to the applicable limit and other rules. The Substantial Presence Test, used to determine overall U.S. tax residency, isn’t the rule that determines FEIE eligibility. The other options aren’t used for FEIE qualification.

To qualify for the foreign earned income exclusion, you must show eligibility under one of two specific tests that focus on your time living abroad. The Bona Fide Residence Test requires you to be a bona fide resident of a foreign country for an uninterrupted period that includes a full tax year. The Physical Presence Test requires you to be physically present in foreign countries for at least 330 full days during a 12-month period. If you meet either test, you can exclude a portion of your foreign earned income, subject to the applicable limit and other rules.

The Substantial Presence Test, used to determine overall U.S. tax residency, isn’t the rule that determines FEIE eligibility. The other options aren’t used for FEIE qualification.

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