Physical presence test

Physical presence test,

Definition of Physical presence test:

  1. The test requires that a person be physically present in a foreign country or countries for at least 330 full days during a consecutive 12 months. The 330 days during which the person is abroad do not need to be consecutive.

  2. The physical presence test is a tool used by the Internal Revenue Service (IRS) to determine whether a taxpayer qualifies for the foreign earned income exclusion when filing their taxes.

  3. A test used to determine if an individual who lives abroad qualifies for foreign earned income and housing exclusions or deductions under the IRS code. U.S. citizens or resident aliens who are physically present in a foreign country for at least 330 days over a period of 12 consecutive months typically meet the criteria for this test.

How to use Physical presence test in a sentence?

  1. That exclusion, called the Foreign Earned Income Exclusion, is available if you pass the physical presence test.
  2. The physical presence test is a measure of how many days (330 is the minimum) you spent in a foreign country or (from the other perspective) outside of the U.S.
  3. If you are a U.S. citizen or resident alien who spends more than 330 days living in a foreign country, you may be eligible to exclude the money you earn in that country from your U.S. taxes.

Meaning of Physical presence test & Physical presence test Definition