# Bone fide residence test



## robert32 (Oct 3, 2019)

I have lived abroad for 15 years, work here full time, own a house here, etc etc. This summer I went with a couple local friends on a six week US road trip, so we were in the US for six whole weeks. No work, literally going to 15+ states and hotels etc the whole time.

This will be the only trip to the US this year, and indeed, the only trip back to the US in the past 5+ years and probably the upcoming 5+ years too.

I assume that this length of a trip 'back' to the US doesn't break my bone fide residence/ability to use the FEIE?

Thanks!


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## Bevdeforges (Nov 16, 2007)

The 330 days rule only really applies to those using the physical presence test - or so I've always assumed. Sure, you still need to fill out the section that asks for presence in the US, but I don't think it matters. Bona fide resident should do the trick - and all they'll really be looking for is how many days you worked while in the US (which in your case is 0).


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## Moulard (Feb 3, 2017)

Bev is right. 

There are actually three tests for the FEIE.

First your your tax home must be outside the united states. This is mandatory. Your tax home is your regular or principal place of business, employment, or post of duty, regardless of where you maintain your family residence. You sound like you clearly meet that test.

The second is that you must meet either the bonafide residents test OR the physical presence test. Whether you are a bonafide resident of a foreign country depends on your intention about the length and nature of your stay (in that country). Pretty clear you are a bonafide resident if you have been outside the US as long as you have.

People often get confused and / or conflate these last two tests. In part because to meet the bonafide residents test you must have lived outside the US for an entire calendar year. Unless you happen to move on the 31 Dec, you aren't going to meet that in the first year... so emigrants typically need to use the physical presence test the first part year. 

There are fairly good examples of the tests and what is required in Pub 54 if you want more info.


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## shony (Jun 13, 2019)

The most profit of bona fide residence is that you can travel without exemption. Just do not work in US.


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## Moulard (Feb 3, 2017)

shony said:


> The most profit of bona fide residence is that you can travel without exemption. Just do not work in US.


No, you can still work in the US. Its just you cannot exclude that income and things get a little bit more complicated, and may require a bit more thought and planning.

You still have the standard deduction which may mean you owe no US tax.

You also still have the option to use foreign tax credits - which may completely offset any US tax owed - particularly if you are in a country that has a higher income tax for earned income than the US.


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## shony (Jun 13, 2019)

I know that. Working in the US will complicate tax return. But yes, you can work.


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## robert32 (Oct 3, 2019)

So I am doing this now via taxact software, which I do every year.

I have gone the bone fide route and entered my six week trip to the US, listed 0 days on business and 0 income earned.

I skipped the question on how many days I was abroad as it would go under 330 and I am not going via the physical presence test.

However as soon as I do that, it says I can't exclude my foreign income and is giving me a big bill.

(Well, it is either the big trip to the US, or not entering a number of days for the physical presence test that is triggering that.)

Any thoughts how to fix this within taxact, or do I have a bigger problem?


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## robert32 (Oct 3, 2019)

I wasn't clear above - it wasn't the days abroad question I skipped, it was the 'qualifying days of residence' question. Where I went wrong I think is that I actually put in 0 in the box for qualifying days, which was part of the bone fide test. Under bone fide, the qualifying days is 365, as it has nothing to do with physical presence. Think I misunderstood that question, as I thought it was the physical presence test question, but I don't think it is?



> Foreign Earned Income - Exclusion - Qualifying Days
> Enter the number of days in your qualifying period that fall within your 2019 tax year.
> 
> Number of days
> ...


As soon as I enter 365 there, it sorts it.

I've done this correctly now, right?


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## Bevdeforges (Nov 16, 2007)

robert32 said:


> As soon as I enter 365 there, it sorts it.
> 
> I've done this correctly now, right?


Yup. As a bona fide resident, you are resident overseas all 365 days in the year.


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## robert32 (Oct 3, 2019)

Great, thank you. Minor heart attack there!


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