Hi, my name is David McKeague and I'm the president of Greenback Expat Tax Services. I wanted to tell you a little bit today about the bona fide residence test. As you may know, this is one of the two tests you need to pass in order to be considered an expat for tax purposes. So, what does this really mean? You want to qualify as an expat so that you can receive the foreign earned income exclusion and the foreign housing allowances, as well as the foreign tax credit. The foreign earned income exclusion is currently $92,900 for the 2011 tax year. The deductions and credits can also be quite significant, which is why it's important to understand and pass the bona fide residence test. In order to qualify as a bona fide resident, there are a few criteria you need to meet. First, you have to be either a US citizen or a US resident alien. Second, you have to be living in a foreign country. You will need to have a resident card in that country and show proof that you're paying taxes there. The third part of the test is that you have to be residing full-time in the foreign country. This means living there for at least one year and having no intentions of returning to the United States. While it can be difficult to gauge or prove that you have no intention of going back to the US, it's important to note that it means no immediate plans to do so. Let's look at a couple of examples to help clarify the test. If you have a two-year contract in Germany but know that you'll be returning to the US afterward, you wouldn't qualify for the bona fide residence test. Similarly, if you spend nine months in Costa...
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Video instructions and help with filling out and completing What Form 2350 Fide
