Tax-Savvy Expat Podcast Episode 3: The Foreign Earned Income Exclusion (Physical Presence Test and Bona Fide Residence Test)
The second in a two-part series about the foreign earned income exclusion, which is the backbone of many expats' US tax strategy.
This episode covers the physical presence test and bona fide residence test. You must pass one of these two tests to qualify for the foreign earned income exclusion (and you only need to pass one–no bonus points for passing them both).
After this episode, you’ll know all about:
- Exactly how these two tests work;
- The difference between “a year” and “a 12-month period”; and
- Why sailors, astronauts, and Antarctic explorers don’t get to take the foreign earned income exclusion.
Articles that discuss topics touched on in this episode:
- Reduce or Eliminate your US Tax Bill with the Foreign Earned Income Exclusion
- Expat Tax Isn’t Something You Do Once a Year
Listen on iTunes by clicking here.
Send me your thoughts on this episode (and any questions you’d like covered on a future episode) by clicking here.
Ready to become an expert on this stuff? Click here to take the US Tax Masterclass for Americans Abroad (absolutely free).