Physical Presence Test
Everybody loves a tax break! The Physical Presence Test is designed for American Expats who are only away from home for 11 months or more. This exclusion can decrease or remove any U.S. income tax you may owe.
Qualifications for Physical Presence Test
The requirements for the Physical Presence Test are as followed:
– U.S. Citizen or resident alien
– Outside the USA for 330 days out of 365 days
– Legally living in a foreign country (cannot claim status from Cuba, North Korea, etc…)
– When traveling to and from the United States, each day spent will be subtracted from the total
– Each day on U.S. territories is also subtracted from the total
The main thing is to remain outside of the U.S. for at least 330 days in a 365 day period. The 365 day period is not based on the calendar year, it is based on the prior 12 months for calculation purposes.
This test can start on any day of the month. For example, if your first full day being overseas was June 28th, 2010, the period can be calculated up to June 27th, 2011. No exceptions apply to the Physical Presence Test.
Still have questions? Contact us today and we can help determine if you qualify!