The bona fide residence test qualifies a taxpayer for the foreign earned income exclusion if they are a bona fide resident of a foreign country for an uninterrupted period that includes a full tax year, based on the facts of their life there.
Intent, length of stay, family location, and local tax status all matter. Trips to the United States are allowed if the foreign residence is maintained.
Why it matters: it is more flexible than the physical presence test on travel but harder to prove.
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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.
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