Physical presence test
The physical presence test requires that you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. A "full day" means a 24-hour period beginning at midnight; partial days (including travel days to or from the United States and any time spent in the United States) do not count toward the 330. The 12-month period can begin on any date and does not have to align with the calendar or tax year. You can meet the test even if you return to the United States for short periods, as long as the total foreign presence reaches 330 full days within the qualifying window. Keep contemporaneous records such as passport stamps, airline tickets, and a day-by-day calendar to substantiate the count.
The test is mechanical and does not require you to establish residency or intent in the foreign country. However, the days must be spent in one or more foreign countries; time aboard a ship or in international waters generally does not qualify. If you meet this test (and have foreign earned income), you may claim the FEIE on Form 2555 regardless of your visa status or length of stay.
Bona fide residence test
The bona fide residence test is a facts-and-circumstances test. You must be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year (January 1 through December 31 for calendar-year taxpayers). Key factors include your intent to reside abroad indefinitely, the nature and length of your stay, your ties to the foreign country (home, family, social, economic), and your ties to the United States. A visa label (e.g., tourist vs. work visa) is not determinative; the IRS looks at the overall pattern of your life. Temporary visits to the United States for business, family, or health reasons generally do not break the period of uninterrupted residence if you maintain your foreign home and return abroad.
Establishing bona fide residence often provides more flexibility than the physical presence test because there is no strict day count, but it requires stronger evidence of intent and ties. Documentation can include foreign lease or purchase contracts, local bank accounts, driver's license, voting registration (if applicable), employment contracts, and correspondence showing your foreign address as primary. If you meet this test, you may also claim the foreign housing exclusion or deduction on the same Form 2555.
Choosing between (or combining) the tests
Many expats qualify under both tests in a given year and should evaluate which produces the best tax result when combined with the Foreign Tax Credit. The physical presence test is easier to prove with records but inflexible on timing. The bona fide residence test can cover an entire tax year more easily but demands stronger evidence of intent. Preparers model both and often use the FEIE for part of the year and the credit for the rest. Neither test excuses FBAR or Form 8938 reporting when thresholds are met.