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- You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. If you are a calendar year taxpayer, an entire tax year is from January 1st through December 31st.
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The bona fide residence test applies to U.S. citizens and to any U.S. resident within the meaning of IRC section 7701 (b) (1) (A) who is a citizen or national of a country with which the United States has an income tax treaty in effect.
Oct 25, 2022 · The Bona Fide Residence Test is one of two ways U.S. taxpayers can qualify for the Foreign Earned Income Exclusion (FEIE). It shouldn’t be confused with the Physical Presence Test, the other way to qualify for the exclusion. What is the difference between the Bona Fide Residence Test and the Physical Presence Test?
Apr 9, 2024 · In this guide, we’ll explore the definition of bona fide residence, provide clear examples, and help you determine if you meet the IRS requirements to qualify as a bona fide resident abroad.
Mar 28, 2024 · Summary: Bona fide foreign residents qualify for the foreign earned income exclusion by meeting IRS criteria for the bona fide residence test. This status allows individuals residing in a foreign country for a full tax year to potentially reduce taxable income and exclude housing expenses.
To pass the bona fide residency test, the individual needs to reside within a foreign country for an entire tax year, defined as January 1 through December 31. The individual is allowed to leave this country for brief trips back to the U.S, or somewhere else for either vacation or business.
Dec 16, 2020 · Updated December 16, 2020. Reviewed by. Lea D. Uradu. Fact checked by. Diane Costagliola. Investopedia / Ellen Lindner. What Is a Bona Fide Foreign Resident? Any resident of a foreign...
