Physical Presence Test
Taxpayer must be physically present in a foreign country 330 full days (a day being defined as a 24hour period which begins at midnight, not counting time over international waters) during a consecutive 12-month period. Exception: The full 330-day requirement is waived if the taxpayer must leave the country due to war, civil unrest or adverse conditions, as explained in the “Waiver of Minimum Time Requirements” section below.
The 12-month period can start with any day of any calendar month, ending the day before the same calendar day 12 months later.
Example: Tymand Munee worked in Germany over 20 months starting January 1, 2022through August 31, 2023. He spends February 2022 and February 2023 on vacation with relatives in Dallas, Texas. Munee is present in Germany for the following two 12-month periods.
-
January 1, 2022, through December 31, 2022
September 1, 2022, through August 31, 2023
By overlapping the 12-month periods this way, Munee meets the physical presence test for his entire stay in Germany.