Foreign Residence Test

Foreign Residence Test

Foreign Residence Test means:
the test that a U.S. citizen (and some resident aliens) must meet (the bona fide foreign residence test) for an entire tax year to qualify for the foreign earned income exclusion. The U.S. Internal Revenue Service distinguishes residence from domicile, the place to which a taxpayer always returns or intends to return. A taxpayer with a U.S. domicile may also have a foreign residence. The following (among other factors) have been considered in determining whether a taxpayer has a bona fide foreign residence:

• the intention of the taxpayer.

• the establishment of a temporary home for an indefinite period.

• participation in community activities and assimilation into the environment.

• physical presence in the residence.


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