The physical presence test is one of two tests used in determining whether or not you are eligible to claim the Foreign Earned Income Exclusion or Deduction. The foreign earned income exclusion allows you to exclude income you earned from your annual taxes. If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions, as well as the foreign housing deduction.

You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. The 330 qualifying days do not have to be consecutive. The physical presence test applies to both U.S. citizens and U.S. resident aliens.

This test is based only on how long you stay in a foreign country or countries. This test does not depend on the kind of residence you establish, your intentions about returning to the United States, or the nature and purpose of your stay abroad. However, your intentions with regard to the nature and purpose of your stay abroad are relevant in determining whether you meet the tax home test, as explained under Chapter 4 of Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.