The foreign earned income exclusion has two doors, and picking the wrong one costs either money or freedom. The physical presence test is mechanical: 330 full foreign days in a 12-month window, no judgement involved (our full guide covers the counting rules). The bona fide residence test is the opposite: no fixed day count, but a facts-and-circumstances judgement that you genuinely resided in a foreign country for an entire tax year (IRS, Bona fide residence test). Updated 5 August 2026.
The trade-off in one table
| Physical presence | Bona fide residence | |
|---|---|---|
| Qualifying logic | Pure day count: 330 full foreign days / 12 months | Facts and circumstances: a real residence abroad |
| Minimum period | Any 12-month window, can straddle years | An entire tax year (Jan 1 to Dec 31), then extends |
| US visits | Hard cap: about 35 days including transit | No fixed cap: visits must not undermine the residence |
| Who typically uses it | First-year expats, nomads, anyone without a settled base | Settled expats with a home, lease, local life abroad |
| Evidence that decides it | A day-by-day travel log | Housing, family location, local ties, intent, and still your travel pattern |
How people actually use the two tests
The common path: qualify by physical presence in year one (when you cannot yet show a full calendar year abroad), then switch to bona fide residence once a complete tax year of settled foreign life exists, buying back the freedom to visit the US for more than 35 days. Nomads who never settle anywhere usually stay on physical presence indefinitely, which means the 330-day count never stops mattering. And even bona fide residents get asked about their travel pattern: heavy US presence undermines the claim, so the day log never becomes irrelevant, it just stops being the single deciding factor.
Either way, the evidence is a day log
Both doors are defended with the same record: where you were, every day, exportable when the return is prepared. The Days Monitor iPhone app keeps that log automatically across every country, with a custom rolling rule for the 330/365 pattern and timestamped PDF/CSV exports for Form 2555. If state residency is also in play (it usually is for leavers), see the state day-count table. Download it on the App Store.
Sources
- IRS, Bona fide residence test (accessed 5 August 2026)
- IRS, Physical presence test (accessed 5 August 2026)
This article is general information, not legal, tax or immigration advice. Rules and their enforcement change, and your facts matter. Verify current requirements with the official sources linked above and confirm your position with a qualified professional.
Frequently Asked Questions
What is the difference between the physical presence test and bona fide residence test?
Which FEIE test should a first-year expat use?
Can bona fide residents visit the US as much as they like?
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