Bona Fide Residence Test The Bona Fide Residence Test is only set to find out where you are a bona fide citizen of foreign country (or many) in which you are residing for a sequential time period which consists of one or more tax years. To be considered for this test, you have to be a U.S. resident or a U.S. citizen alien of the country the U.S. has an earnings treaty with. There are a lot of factors which determine your residence such as the length of your stay, the characteristics of your work abroad, the purpose of your trip, & so on. In order to be declared a Bona Fide Citizen, you need to prove to the IRS that you've been a resident of a foreign country for an uninterrupted tax year, as well as depending on the info you provide on Form 2555, the IRS will decide your Bona Fide Residence Status. Bona Fide Residence Test The bona fide residence test includes: First, as a way to fulfill the bona fide residence test, an individual must reside in a foreign country for a continuous time period that contains an whole tax year (January 1 - December 31). A taxpayer can, however, go away from his or her country of bona fide residence test in order to travel back to the United States for the brief periods of time. If you disagree with any of this just see What is the Bona fide residence test? It is important to notice that only because you live in a foreign state for an entire tax year does not mean that you participate in the bona fide residence test. As an example ,, let's assume that you're a construction worker as well as who was sent to work in Switzerland for one entire tax year. You lived in the camps at the construction site & did not incorporate with the Swiss culture. Since the length of your stay is simply one reason in the bona fide residence test, you would not be eligible in this case. But, let's say that you gone to Spain, taken your spouse and children with you, and rented a house. These works indicate that your stay in Spain appears to be permanent (still though you eventually may plan on returning to the united states). As such, you'd meet the criteria for the bona fide residence test in this example as you clearly have attempted to establish your life in Spain. It's also essential to note that if you tell you they are a non resident of the foreign state to the foreign state's government and so do not pay earnings taxes to such government, you would not be able to qualify for the foreign earned income exclusion for the bona fide residence test. In general, when you consider staying abroad as well as don't qualify for the foreign earned revenue exclusion for the physical presence test, it's important to combine yourself with the regional culture and set up your stable residence abroad! Sean Smith is a US Expat taxpayer who moved abroad and likes to review products and services.