The physical presence test qualifies a taxpayer for the foreign earned income exclusion if they are physically present in a foreign country for at least 330 full days during any 12-consecutive-month period.
The 12-month period does not have to match the calendar year, and days in transit over international waters do not count as foreign days. Travel to the United States counts against the 330.
Why it matters: it is the test most digital nomads rely on, and a few days of miscounted travel can cost the entire exclusion.
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