Physical presence test: Complete guide to the 330-day rule (2026)
The physical presence test is an IRS requirement to qualify for the Foreign Earned Income Exclusion (FEIE). You must be physically present in a foreign country for at least 330 full days during any 12-month period to exclude up to $130,000 of foreign earned income from US taxation in the 2025 tax year.
This test is one of two paths to qualify, alongside the bona fide residence test. Most mobile expats lean on the day-count option because the IRS physical presence test meaning stays clear even when travel patterns change.
This article is brought to you by Taxes for Expats – a trusted leader in guiding Americans overseas through complex tax rules. If you’re ready to understand the Physical Presence Test in detail and maximize your FEIE benefits, our experts are here to help every step of the way.
What is the physical presence test?
The physical presence test is an IRS requirement allowing US citizens and residents to exclude foreign earned income from US taxation. To qualify, you must be physically present in one or more foreign countries for at least 330 full days during any consecutive 12-month period you choose.
Physical presence test requirements
- Must be physically present for 330 days minimum. Use our 330-day requirement calculator to track your qualifying days.
- The 12-month period can start on any day.
- Time can be split between multiple foreign countries.
- Travel days depend on the hours and the midnight-to-midnight rule.
- US airspace and international waters do not qualify as foreign country time.
- No visa is required for the day count itself.
Unlike the bona fide residence test, which leans on facts and circumstances, the IRS physical presence test meaning stays mechanical – qualifying days get counted, and non-qualifying days do not. That makes this approach popular with digital nomads, contractors, and frequent movers.
The 330-day requirement explained
You must be physically present in foreign countries for 330 full days (24-hour periods) out of any 12-month period. The 330 days do NOT need to be consecutive, and the 12-month period does NOT need to align with the calendar year or the tax year.
What counts as a "full day"
A full day means a full 24-hour stretch from midnight to midnight spent in a foreign country. Most travel days do not qualify, because a departure or arrival that touches the United States can break that midnight-to-midnight block.
Example: a London flight leaving at 11:00 p.m. and arriving in New York at 7:00 p.m. leaves neither date as a qualifying day abroad. Time in US territories also does not qualify. Time in international waters and the airspace above them does not qualify.
Choosing your 12-month period
The 12-month period can be any straight 12 months. That flexibility allows strategy – pick the window that captures the most qualifying days inside the tax year. Different windows can be used in different years when facts change.
Example: after a move to Germany on March 15, a March 15 to March 14 window can preserve more foreign days for the first year abroad than a January-through-December approach.
Physical presence vs bona fide residence
| Feature | Physical Presence Test | Bona Fide Residence Test |
|---|---|---|
| Minimum time required | 330 days abroad in a rolling year | Entire tax year as a resident abroad |
| Flexibility | High – choose any rolling window | Lower – tied to a full tax year |
| Best for | High travel and frequent moves | Long-term settled life abroad |
| Residence requirements | None beyond a qualifying presence | Requires established residence facts |
| Travel to the US | The US presence can reduce the qualifying days | Short trips can be allowed |
| Proof required | Travel records and day logs | Housing, ties, local records |
| Calendar year requirement | Not required | Required for the core year |
| FEIE amount (2025 tax year) | Up to $130,000 | Up to $130,000 |
NOTE! You only need to meet ONE test to qualify for FEIE. Cannot use both simultaneously, but can switch between years depending on your situation.
Foreign Earned Income Exclusion (FEIE) and physical presence test
Meeting the physical presence test qualifies you for the Foreign Earned Income Exclusion (FEIE), allowing exclusion of up to $130,000 in foreign earned income from US taxation in 2025. This is claimed on Form 2555 filed with Form 1040. FEIE applies only to earned income – wages, salary, self-employment – not passive income.
Key FEIE details
- The 2025 tax year limit is $130,000 per qualifying person.
- A married couple can each claim the exclusion when both qualify.
- Covered income includes wages, salary, bonuses, professional fees, and foreign-earned self-employment income.
- Not covered: dividends, interest, capital gains, rental income, pensions, or annuities.
- Form 2555 must be attached to Form 1040 to claim the exclusion.
- Income earned during days spent in the United States is not foreign earned income for this rule.
- The exclusion is prorated when the qualifying time covers only part of a year.
- For self-employment, the exclusion reduces regular income tax but does not reduce self-employment tax.
NOTE! On Form 2555, one path gets selected and documented. The physical presence route is supported by the chosen dates and the day count recorded in the physical presence section of the form instructions.
How to calculate your 330 days
Calculate by tracking every day abroad, counting only full 24-hour days in foreign countries. Use a spreadsheet, a calendar app, or an IRS worksheet to document each day. Travel days require careful hour-by-hour analysis.
How to calculate the physical presence test
- Choose a 12month period that fits the tax year being claimed.
- Mark each date as a full foreign day, partial travel, or a US day.
- Count only full days toward the minimum.
- Add documentation for every date: location and local arrival or departure time.
- For travel days, check whether midnighttomidnight occurred in a foreign country.
- Remove days spent in US territories, and remove time in international waters.
A physical presence test calculator can help keep the math clean. A second physical presence test calculator check using passport stamps and tickets helps catch date drift before filing.
Physical presence test examples
- Sarah, freelance developer: Thailand Jan–Apr (110 days) → Portugal May–Aug (100 days) → Mexico Sep–Dec (125 days) → US visit Dec 20–Jan 5 (16 days) leaves 335 qualifying days. The foreign earned income exclusion 330-day rule is met, and 2the 025 earned income can be excluded up to the limit.
- Mike, teacher in Korea: Aug 20, 2024 to June 15, 2025 totals 300 days abroad by calendar year thinking. A better 12month period, such as Sep 1, 202,4 to Aug 31, 202,5 can produce 332 qualifying days and unlock the physical presence test for the year.
Conclusion
The physical presence test provides a clear path for US expats to exclude up to $130,000 in foreign earned income from US taxation by being physically present abroad 330+ days during any 12month period. While mechanical and straightforward compared to the bona fide residence test, it requires meticulous daytracking and documentation.
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Physical Presence Test checklist
- Confirm 330 full days inside the chosen 12-month period.
- Keep a tight travel log with supporting documentation.
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Confirm tax home stays in a foreign country for the qualifying span.
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File Form 2555 with Form 1040 using the right dates.
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Remember, the exclusion does not reduce self-employment tax.
Taxes for Expats supports the physical presence test help, including Form 2555 preparation, and broader expat tax services for Americans abroad.
FAQ
The physical presence test is a day-count rule that the IRS uses for the Foreign Earned Income Exclusion. It looks at where the taxpayer is located each day, not where they rent a home. You qualify by spending full days in foreign countries during a rolling year you choose.
You need 330 full days in foreign countries within a rolling year. The days do not have to be in a row. Picking the right 12-month period can help keep more qualifying days inside the tax year you’re filing for.
For what counts as a full day, the IRS uses midnight-to-midnight. A date counts only when the full 24 hours are spent in a foreign country. A day that includes time in the United States normally does not count, and time above international waters does not count as a foreign-country day.
Yes. The physical presence rule allows the required total across more than one foreign country. The count is about presence in foreign countries, not residence in a single place. The key is that each counted date must still qualify as a full 24-hour day abroad under the IRS definition.
No. The rolling year can start on any date. A 12-month period can overlap tax years, and the window can be selected to maximize the exclusion for the tax year in question. That planning matters most in the first year abroad, when a calendar-year approach can leave too few qualifying days.
The physical presence test vs bona fide residence comparison is about proof style. One path is a day-count method based on travel and location. The other path is a residency method that looks at facts and circumstances. Both are routes to the same earned income benefit, yet the paperwork and timing can feel very different.
Many travel days do not count because a qualifying day must be a full midnight-to-midnight period abroad. A departure day and an arrival day often become non-qualifying when time is spent in the United States. The IRS also excludes time over international waters from foreign country time, even during transit.
No. Meeting the test can support excluding foreign earned self-employment income from regular income tax, yet the IRS notes that the excluded amount does not reduce self-employment tax. Publication 54 also explains that US self-employment tax is figured without regard to the exclusion.
