Expats who pass the Bona Fide Residence Test are eligible for tax exclusions and benefits, such as:
- Foreign Earned Income Exclusion.
- Foreign Housing Exclusion.
- Foreign Housing Deduction.
Who is eligible for the Bona Fide Residence Test?
- US citizens or US resident aliens who are residents of a foreign country that has an income tax treaty with the US.
- Expats who have an established residence in a foreign country.
- Expats who have been living within the host country for an entire tax year (January 1-December 31).
- Expats who have no plans to move back to the US in the near future.
Who is Not Eligible?
- You tell the foreign authorities that you are not a resident of your host country.
- You are not subject to taxes in your host country.
- The foreign authorities have not finalized your tax status and/or foreign residency within the country.
Learn more about the Bona Fide Residence Test.