It’s not a health problem. You received’t want a stopwatch, a yoga mat, or to show what number of push-ups you are able to do in a minute. However the bodily presence check is a check—one that may prevent hundreds in U.S. taxes in the event you go.
Consider it because the IRS’s model of “Are you actually residing overseas, or simply on an prolonged trip?” They’re not judging your way of life selections (promise), however they are counting your days—actually. Spend sufficient of them exterior the U.S., and it’s possible you’ll qualify to exclude a giant chunk of your overseas earnings out of your American tax invoice.
For expats, distant staff, and location-hoppers, it’s a surprisingly easy rule with surprisingly large penalties. And in contrast to most issues within the U.S. tax code, it’s one you may clarify with out breaking into a chilly sweat.
📋 Key Updates for 2025
- The International Earned Earnings Exclusion restrict rises to $130,000 for the 2025 tax yr, up from $126,500 in 2024.
- The IRS has launched its 2025 record of nations eligible for adverse-conditions waivers that may assist expats depend in any other case disqualified days.
- The IRS is rising scrutiny of residency claims in 2025, notably for self-employed expats, digital nomads, and anybody with a gray-area tax house.
What’s the Bodily Presence Check?
Spending most of your yr exterior the U.S.? The IRS would possibly reward you for it — within the type of decrease taxes. The bodily presence check is certainly one of two methods U.S. expats can qualify for the International Earned Earnings Exclusion (FEIE), which lets you go away a portion of your overseas earnings off your U.S. tax return.
It’s not computerized, although. To say the FEIE, it’s a must to meet the necessities of one of those two checks:
- Bodily Presence Check: A day-counting rule. You have to be bodily current abroad (or nations) for no less than 330 full days in any 12-month interval.
- Bona Fide Residence Check: A “life overseas” rule. It is advisable present that you just’ve genuinely made a overseas nation your property for a full tax yr, with robust ties and the intention to remain.
The bodily presence check works greatest for individuals who journey incessantly or dwell overseas with out essentially settling in a single place long-term. So long as you hit that 330-day threshold — and people days are exterior U.S. airspace and worldwide waters — you’re within the clear.
💡 Professional Tip:
That is purely a numbers recreation. It doesn’t matter in the event you’re in a single nation or ten — in the event you meet the day requirement, you may go the check and probably save hundreds at tax time.
Necessities and eligibility: Assembly the Bodily Presence Check
The bodily presence check isn’t about the place you pay lease or the place your stuff is — it’s purely in regards to the time you’ve spent exterior the U.S. Right here’s what it’s worthwhile to know to qualify.
The 330-day rule
- You could spend no less than 330 full days abroad (or nations) throughout any consecutive 12-month interval.
- That 12-month window doesn’t must match the calendar yr or the tax yr — you can begin it on any date.
How the IRS counts a “full day”
- A full day means a 24-hour interval, beginning at midnight and ending the next midnight.
- Your first full day is the primary day you’re current abroad for the complete day.
- Partial days — together with the times you journey to or from the U.S. — don’t depend.
Which days qualify
- Common workdays overseas.
- Enterprise journeys abroad.
- Non permanent absences out of your overseas house (so long as you stay exterior the U.S.).
- Days you couldn’t journey because of civil unrest or antagonistic circumstances, if the IRS points a waiver in your location.
💡 Professional Tip:
Monitor each day rigorously. Even one or two lacking days might imply the distinction between qualifying for the FEIE and paying U.S. tax in your full earnings.
Proving it to the IRS: The way to doc your days overseas
Qualifying for the bodily presence check is one factor. Proving it to the IRS is one other. You’ll want a paper path that clearly reveals the place you had been — and when — to again up your declare on Kind 2555.
Important paperwork
Hold data that present each your location and your overseas tax house, corresponding to:
- Passport stamps and journey itineraries
- Airline tickets or boarding passes
- International visas or residency permits
- Employment contracts or shopper agreements
- International financial institution statements and utility payments
Why detailed data matter
The IRS isn’t guessing — they’ll test the variety of days you declare in opposition to the proof you present. In case your documentation is obscure or incomplete, you would lose the International Earned Earnings Exclusion and face a better tax invoice.
What the IRS seems to be for
In your tax return (and in any follow-up questions), the IRS might evaluate:
- The precise dates you entered and left every nation
- Proof you maintained a overseas tax house in the course of the 12-month interval
- Whether or not your claimed days meet the 330-day requirement underneath U.S. regulation
💡 Professional Tip:
Don’t wait till tax season to tug this collectively. Hold a journey log year-round — even a easy spreadsheet — so that you’re not scrambling to recollect the place you had been final March.
Bodily Presence Check vs. Bona Fide Residence and different checks
The bodily presence check is only one of a number of methods the IRS figures out your tax state of affairs while you dwell or work overseas. Every check has its personal guidelines, quirks, and splendid candidates. Understanding the variations may also help you select the one which saves you probably the most.
Bodily Presence Check
That is the day-counter’s dream — no way of life questions, no “intent” debates, simply numbers.
- What it measures: Time spent overseas — no less than 330 full days in any 12-month interval.
- Finest for: Digital nomads, frequent vacationers, and expats and not using a fastened house abroad.
- Key profit: Simple rule that may qualify you for the International Earned Earnings Exclusion.
Bona Fide Residence Check
With the Bona Fide Residence check, it’s not about what number of days you’re away — it’s about the place your life relies.
- What it measures: Whether or not you’ve made a overseas nation your true house for a whole tax yr.
- Finest for: Lengthy-term expats with a steady residence and robust ties overseas.
- Key profit: Can qualify you for the FEIE even in the event you spend lower than 330 days exterior the U.S.
Substantial Presence Check
This one flips the script — it’s about proving how a lot time you spend in the U.S.
- What it measures: The variety of days you’re bodily current within the U.S. (primarily for non-U.S. residents determining in the event that they’re thought-about U.S. residents for tax functions).
- Finest for: International nationals residing or working within the U.S., not U.S. expats.
- Key danger: Triggering U.S. tax residency while you didn’t intend to.
Choosing the proper check
Selecting the correct check comes all the way down to your way of life, journey patterns, and the place your “tax house” actually is.
- For those who journey typically and don’t keep in a single place lengthy, the bodily presence check is often easiest.
- For those who’ve planted roots in a single nation, the bona fide residence check could also be a greater match.
- For those who’re a non-U.S. citizen spending important time within the U.S., watch the substantial presence check to keep away from an unintentional U.S. tax invoice.
💡 Professional Tip:
You possibly can’t “stack” these checks to double your advantages, however you may select annually which one provides you the strongest case for the International Earned Earnings Exclusion — and see the way it works alongside the International Tax Credit score for max financial savings.
Tax advantages and implications for U.S. expats
The bodily presence check opens the door to some severe tax perks. Right here’s what’s on the desk for U.S. expats, resident aliens, and inexperienced card holders who qualify.
Key tax advantages
When you meet the 330-day requirement, you might be able to:
- Declare the International Earned Earnings Exclusion (FEIE): Go away a portion of your overseas earnings off your U.S. tax return.
- Use the International Housing Exclusion or Deduction: Scale back your taxable earnings even additional by excluding eligible housing prices overseas.
- Entry sure earnings tax exemptions: In some circumstances, decrease your U.S. tax invoice considerably — even to zero — in case your overseas earnings falls underneath the FEIE restrict.
The way it impacts your U.S. tax return
Qualifying for the FEIE adjustments how your return seems to be and what types you’ll want.
- You’ll file Kind 2555 together with your federal return to say the exclusion.
- Your overseas earnings nonetheless must be reported — it’s excluded, not ignored.
- Twin residents and nonresidents might have additional reporting necessities relying on treaties and different tax guidelines.
FEIE vs. International Tax Credit score
Typically the FEIE isn’t the best choice — or it’s possible you’ll mix it strategically with the International Tax Credit score (FTC).
- FEIE benefit: Nice in the event you earn earnings in a low-tax nation and need to take away it from U.S. taxation fully.
- FTC benefit: Helpful in the event you’re paying excessive taxes overseas — it will possibly offset your U.S. tax legal responsibility greenback for greenback.
- In some circumstances, a mixture of each provides the very best end result.
💡 Professional Tip:
Earlier than you determine, run the numbers (or have a tax professional do it). Selecting between the FEIE and FTC can have a huge impact in your complete tax invoice — and switching methods after submitting is just not at all times straightforward.
Frequent errors and how one can keep away from them
For U.S. taxpayers claiming the bodily presence check, the principles appear easy — till you begin counting days and filling out your earnings tax return. Whether or not you’re a settled expatriate or a globe-trotting American expat with a posh journey schedule, even one small misstep can value you the International Earned Earnings Exclusion and result in additional IRS scrutiny.
Listed here are the most typical methods folks fail the check — and how one can keep away from them:
- Miscounting qualifying days: Bear in mind: 330 full days means midnight-to-midnight abroad. Journey days to or from the U.S. don’t depend towards your minimal time requirement.
- Breaking the 12-month window: Your qualifying interval have to be consecutive months, not a random assortment of dates. Sliding the 12-month window may also help you retain quick U.S. visits from ruining your depend.
- Ignoring the tax house rule: Passing the day depend isn’t sufficient — you additionally want a tax house overseas. Maintaining your principal house or household base within the U.S. can jeopardize your residency standing for FEIE functions.
- Counting non-qualifying areas: Time in worldwide waters, U.S. possessions, or overseas airspace mid-flight doesn’t qualify underneath U.S. regulation, irrespective of how removed from house it feels.
- Overlooking earnings sourcing guidelines: Work executed whereas within the U.S. is U.S.-source earnings and might’t be excluded — even when your employer or purchasers are abroad. That is particularly necessary for these with self-employment earnings.
- Below-documenting your days: With out strong proof — passport stamps, journey logs, leases, utility payments — it’s your phrase in opposition to the IRS. Weak data make tax submitting more durable and enhance the danger of dropping the exclusion.
💡 Professional Tip:
The most secure method to keep away from expensive errors is to trace your journey year-round and evaluate your state of affairs with a CPA or trusted tax information earlier than submitting. Skilled tax companies may also help you optimize your technique and determine whether or not the FEIE, the International Tax Credit score, or a mix of each gives you the bottom tax invoice.
Navigating expat tax with confidence
The bodily presence check will be the important thing to unlocking the International Earned Earnings Exclusion and protecting extra of your cash the place it belongs — with you, not the IRS. Go it, and also you’re one large step nearer to avoiding double taxation as a U.S. expat.
At Vibrant!Tax, we concentrate on serving to People overseas meet the minimal time necessities, shield their residency standing, and file a flawless earnings tax return. Our CPAs know the principles inside out — so you may deal with residing your life overseas whereas we deal with the numbers.Able to see in the event you qualify? Discuss to a Vibrant!Tax CPA in the present day and let’s get your FEIE declare squared away earlier than tax season sneaks up once more.
Incessantly Requested Questions
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What’s the bodily presence check?
It’s an IRS rule that lets U.S. taxpayers qualify for the International Earned Earnings Exclusion in the event that they spend no less than 330 full days abroad (or nations) throughout any consecutive 12-month interval.
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Do the 330 days must be in the identical nation?
No. You possibly can break up your time between a number of nations — so long as you meet the minimal time requirement exterior the U.S., and the times are in overseas territory (not U.S. airspace or worldwide waters).
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Can journey days to or from the U.S. depend towards the 330 days?
No. The IRS requires full 24-hour days overseas. For those who enter or go away the U.S. on a given day, that day doesn’t qualify.
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How is the 12-month interval calculated?
It will possibly begin on any day of the yr. It doesn’t must match the calendar yr or tax yr — which implies you may alter the dates to maximise qualifying days.
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What’s the distinction between the bodily presence check and the bona fide residence check?
The bodily presence check is only a day-counting rule. The bona fide residence check seems to be at your residency standing — whether or not you’ve really made a overseas nation your property for a whole tax yr.
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Can I declare each the FEIE and the International Tax Credit score?
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What paperwork ought to I preserve?
Journey data, passport stamps, visas, leases, utility payments, and financial institution statements. Good documentation makes tax submitting smoother and protects your declare if the IRS asks questions.
