What is the bona fide residence test?

To pass the bona fide residence test, a taxpayer must have established residency in a foreign country and have lived in that foreign country for an entire tax year.

Once a taxpayer is considered a bona fide resident, they are generally a bona fide resident until they move back to the US and establish residency in the US.

For example, if a taxpayer moved abroad in 2019, and continues to live abroad in 2021, then they would generally be considered to pass the bona fide residence test for tax year 2019 and beyond.

Did you know that Expatfile has a foreign earned income exclusion wizard that automatically determines if you meet the bona fide residence test when preparing your expat tax return?