Why Form 2350 Abroad 2023-2024

Hi everybody, my name is David Mickey and I work for Greenback Expat Tax Services. Today, our question is: I have only spent 35 days in the US this year. Does this mean that I will qualify for the foreign earned income exclusion? The answer is maybe. There are two ways to qualify for the foreign earned income exclusion. The first one is through what is known as the physical presence test. Basically, this test states that you have to be inside a foreign country for 330 days in a 365-day period. It's important to note that the 365-day period can start at any time and is not restricted to a calendar year. It could start in May, June, or even October. Also, it's crucial to understand that being in the US for more than 35 days doesn't disqualify you. The important factor is spending at least 330 days in a foreign country. Travel time doesn't count towards the 330-day requirement. For example, if you're traveling from China to the United States, that time spent in transit doesn't count as time spent in a foreign country. There are specific IRS rules regarding flying over certain countries and how they impact your qualification, but in general, aim to spend a full 330 days inside a foreign country to be eligible for the foreign earned income exclusion. The other way to qualify for the exclusion is through the bona fide resident test. If you have been living and working in a foreign country for over a year, paid taxes there, and hold a residence status or visa, you may qualify as a bona fide resident of that foreign country. In these cases, your days spent in the country are no longer important, as there is no limit on how many days you...