Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abord - 2011 Page 15
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44Figure 4–B. How To Figure Overlapping 12-Month Periods
This figure illustrates Example 2 under How to figure the 12-month period.
First Full 12-Month Period
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
’10
’10
’10
’10
’10
’10
’10
’10
’10
’10
’10
’10
’11
’11
’11
’11
’11
’11
’11
’11
*
*
*
28-day vacation in the United States
Second Full 12-Month Period
Reassignment. If you are assigned from
Exception. You can be physically present
How to figure the 12-month period.
There
one foreign post to another, you may or may not
in a foreign country or countries for less than 330
are four rules you should know when figuring the
have a break in foreign residence between your
full days and still meet the physical presence
12-month period.
assignments, depending on the circumstances.
test if you are required to leave a country be-
•
Your 12-month period can begin with any
cause of war or civil unrest. See Waiver of Time
day of the month. It ends the day before
Example 1. You were a resident of Pakistan
Requirements, later.
the same calendar day, 12 months later.
from October 1, 2010, through November 30,
Full day. A full day is a period of 24 consecu-
•
2011. On December 1, 2011, you and your fam-
Your 12-month period must be made up of
tive hours, beginning at midnight.
ily returned to the United States to wait for an
consecutive months. Any 12-month period
assignment to another foreign country. Your
can be used if the 330 days in a foreign
Travel.
When you leave the United States to
household goods also were returned to the
country fall within that period.
go directly to a foreign country or when you
United States.
•
return directly to the United States from a foreign
You do not have to begin your 12-month
Your foreign residence ended on November
country, the time you spend on or over interna-
period with your first full day in a foreign
30, 2011, and did not begin again until after you
tional waters does not count toward the 330-day
country or end it with the day you leave.
were assigned to another foreign country and
total.
You can choose the 12-month period that
physically entered that country. Since you were
gives you the greatest exclusion.
not a bona fide resident of a foreign country for
Example. You leave the United States for
•
the entire tax year of 2010 or 2011 you do not
In determining whether the 12-month pe-
France by air on June 10. You arrive in France at
meet the bona fide residence test in either year.
riod falls within a longer stay in the foreign
9:00 a.m. on June 11. Your first full day of
You may, however, qualify for the foreign
country, 12-month periods can overlap
physical presence in France is June 12.
earned income exclusion or the housing exclu-
one another.
Passing over foreign country. If, in travel-
sion or deduction under the physical presence
ing from the United States to a foreign country,
test, discussed later.
Example 1. You are a construction worker
you pass over a foreign country before midnight
who works on and off in a foreign country over a
Example 2. Assume the same facts as in
of the day you leave, the first day you can count
20-month period. You might pick up the 330 full
Example 1, except that upon completion of your
toward the 330-day total is the day following the
days in a 12-month period only during the middle
assignment in Pakistan you were given a new
day you leave the United States.
months of the time you work in the foreign coun-
assignment to Turkey. On December 1, 2011,
try because the first few and last few months of
Example. You leave the United States by
you and your family returned to the United
the 20-month period are broken up by long visits
air at 9:30 a.m. on June 10 to travel to Kenya.
States for a month’s vacation. On January 2,
to the United States.
You pass over western Africa at 11:00 p.m. on
2012, you arrived in Turkey for your new assign-
June 10 and arrive in Kenya at 12:30 a.m. on
ment. Because you did not interrupt your bona
Example 2. You work in New Zealand for a
June 11. Your first full day in a foreign country is
fide residence abroad, you meet the bona fide
20-month period from January 1, 2010, through
June 11.
residence test.
August 31, 2011, except that you spend 28 days
Change of location. You can move about
in February 2010 and 28 days in February 2011
Physical Presence Test
from one place to another in a foreign country or
on vacation in the United States. You are pres-
to another foreign country without losing full
ent in New Zealand 330 full days during each of
You meet the physical presence test if you are
days. If any part of your travel is not within any
the following two 12-month periods: January 1,
physically present in a foreign country or coun-
foreign country and takes less than 24 hours,
2010 – December 31, 2010 and September 1,
tries 330 full days during a period of 12 consecu-
you are considered to be in a foreign country
2010 – August 31, 2011. By overlapping the
tive months. The 330 days do not have to be
during that part of travel.
12-month periods in this way, you meet the
consecutive. Any U.S. citizen or resident alien
physical presence test for the whole 20-month
can use the physical presence test to qualify for
Example 1. You leave Ireland by air at
period. See Figure 4-B, on the previous page.
the exclusions and the deduction.
11:00 p.m. on July 6 and arrive in Sweden at
The physical presence test is based only on
Waiver of Time
5:00 a.m. on July 7. Your trip takes less than 24
how long you stay in a foreign country or coun-
hours and you lose no full days.
Requirements
tries. This test does not depend on the kind of
residence you establish, your intentions about
Example 2. You leave Norway by ship at
Both the bona fide residence test and the physi-
returning, or the nature and purpose of your stay
10:00 p.m. on July 6 and arrive in Portugal at
cal presence test contain minimum time require-
abroad.
6:00 a.m. on July 8. Since your travel is not
ments. The minimum time requirements can be
within a foreign country or countries and the trip
330 full days. Generally, to meet the physical
waived, however, if you must leave a foreign
takes more than 24 hours, you lose as full days
presence test, you must be physically present in
country because of war, civil unrest, or similar
July 6, 7, and 8. If you remain in Portugal, your
a foreign country or countries for at least 330 full
adverse conditions in that country. You must be
next full day in a foreign country is July 9.
days during a 12-month period. You can count
able to show that you reasonably could have
days you spent abroad for any reason. You do
In United States while in transit. If you are
expected to meet the minimum time require-
not have to be in a foreign country only for
in transit between two points outside the United
ments if not for the adverse conditions. To qual-
employment purposes. You can be on vacation.
States and are physically present in the United
ify for the waiver, you must actually have your
You do not meet the physical presence test if
States for less than 24 hours, you are not treated
tax home in the foreign country and be a bona
illness, family problems, a vacation, or your em-
as present in the United States during the
fide resident of, or be physically present in, the
ployer’s orders cause you to be present for less
transit. You are treated as traveling over areas
foreign country on or before the beginning date
than the required amount of time.
not within any foreign country.
of the waiver.
Chapter 4 Foreign Earned Income and Housing: Exclusion – Deduction
Page 15
ADVERTISEMENT
0 votes
Related Articles
Related forms
Publication 500 - Tax Guide For Wisconsin Political Organizations And Candidates - Department Of Revenue
Financial
Form Dhcs 0001 - California U.s. Citizens And Nationals Applying For Medi-cal Must Show Proof Of Citizenship And Identity (korean) - Health And Human Services Agency
Legal
Related Categories
Parent category: Financial