Understanding the Bona Fide Resident Test – US Expat Taxes Explained


Americans living and working abroad are privy to a host of available tax deductions, credits, and benefits when filing for their US expat taxes. These allowances help US expats avoid dual taxation. They also allow them to claim many important exclusions, like the Foreign Earned Income Exclusion. In order to qualify however, US expatriates living and working abroad must meet very specific guidelines that speak to the amount of time they spend outside of the US.

US Expat Taxes: Qualifying Tests

There are two key tests that determine eligibility, and American expats should ensure they meet the requirements of at least one when filing for their expatriate tax returns. Those include the Physical Presence Test  and the Bona Fide Residence Test. Meeting either of these two tests will allow US expats to qualify for exclusions on their US expat taxes.

Need Help with your US Expat Taxes?

Have a look at our post “US Expat Taxes Explained: The Bona Fide Residence Test.” If you have any questions about your US expat taxes, or if you’d like to learn about our expat tax services, please contact us.

Copyright Greenback Expat Tax Services December 10, 2012