The Physical Presence Test: 330 Days, the 12-Month Rule, and How to Count

The physical presence test is one of two ways to qualify for the Foreign Earned Income Exclusion (FEIE) under IRC 911. You must be physically present in a foreign country or countries for at least 330 full days during a period of 12 consecutive months. A “full day” runs from midnight to midnight, so the day you depart the US and the day you return do not count. The 12-month period does not have to align with the calendar year, and you can choose whichever 12-month window maximizes your exclusion. For Americans living in Canada full-time, the bona fide residence test is usually easier to meet, but the physical presence test is the fallback for people who moved mid-year, travel frequently, or do not yet qualify as bona fide residents.

What is the physical presence test?

The physical presence test is defined in IRC 911(d)(1)(B) and elaborated in Treas. Reg. 1.911-2(d). It qualifies a US citizen or resident alien for the FEIE if they are physically present in a foreign country or countries for 330 full days during a period of 12 consecutive months that includes some part of the tax year at issue. The test is purely mechanical: count days. Unlike the bona fide residence test, it does not require intent to remain, establishment of a home, or ties to the foreign country. You could travel through 15 countries in 12 months and qualify, as long as 330 of those days were spent in foreign countries.

The test exists as the objective alternative to the bona fide residence test. The bona fide test asks whether you are a genuine resident of a foreign country for an entire calendar year. That is a facts-and-circumstances determination (housing, employment, family, intent to return). The physical presence test removes subjectivity: either you were physically in foreign countries for 330 days or you were not.

US citizens and US resident aliens can use either test. Nonresident aliens can use only the bona fide residence test, and only if they are citizens or nationals of a country with which the US has an income tax treaty.

How do I count the 330 days?

A full day is 24 consecutive hours, beginning at midnight and ending at the following midnight. The IRS applies this strictly. If you leave the US on June 1 at 10 a.m., June 1 is not a full day in a foreign country. Your first qualifying day is June 2 (the first midnight-to-midnight period you spend entirely outside the US). If you return to the US on November 15 at 8 p.m., November 15 is not a qualifying day either, because you were not in a foreign country for the full midnight-to-midnight period.

The 330 days do not have to be consecutive. You can return to the US for short visits and resume counting when you leave again. A US citizen living in Canada who flies back to visit family for Thanksgiving (4 days), Christmas (10 days), and a summer wedding (3 days) loses 17 days but still has 348 qualifying days in a 365-day period, well above 330.

Days you spend in transit between two foreign countries count as foreign-country days if you do not pass through the US. A flight from Toronto to London counts. Days spent over international waters or in the air between the US and a foreign country do not count toward the 330, but they do not count against you either. They are simply not foreign-country days.

The calculation gets nuanced for travel that crosses midnight. If you leave Canada at 11 p.m. on March 5 and arrive in the US at 2 a.m. on March 6, you were in a foreign country for the full midnight-to-midnight period of March 5 (you were in Canada at both midnight going in and midnight going out, even though you left before the second midnight). But March 6 is not a qualifying day, because you arrived in the US before midnight.

What is the 12-month period and how do I choose it?

The 12-month period is any 12 consecutive months, and it does not have to be a calendar year. You can start counting from any date. This flexibility matters for mid-year moves.

If you moved to Canada on March 15, 2025, your first possible 12-month period runs from March 15, 2025 to March 14, 2026. Within that period, you need 330 qualifying days. You left the US on March 15 (arrival day does not count), so your first full day in Canada is March 16. From March 16 to March 14, 2026 is 364 days. Subtract any US trips, and if you stayed above 330, you qualify for 2025 (the period includes some part of the 2025 tax year) and for 2026 (the period includes some part of the 2026 tax year).

You can overlap 12-month periods. If one 12-month window does not produce 330 days for a particular tax year, try shifting it. The IRS allows you to choose the 12-month period that gives you the best result for each tax year, as long as the period is 12 consecutive months and includes some part of the tax year you are claiming the exclusion for.

For the 2026 tax year, any 12-month period that includes at least one day in 2026 works. A period running August 1, 2025 through July 31, 2026 includes part of 2026 and qualifies for a 2026 FEIE claim (assuming 330 days in foreign countries during that window).

What is the difference between the physical presence test and the bona fide residence test?

Both tests qualify you for the same exclusion (IRC 911, up to $132,900 in 2026), and you only need to pass one. The differences are in what they require and who they work best for.

The bona fide residence test requires you to be a bona fide resident of a foreign country for an uninterrupted period that includes an entire calendar year. “Bona fide resident” is a facts-and-circumstances determination: the IRS looks at your housing, employment, family ties, driver’s license, bank accounts, social connections, and stated intention. You must establish genuine residence, not just physical presence. The advantage is that there is no day-counting requirement. You can travel extensively (including trips to the US) without jeopardizing the test, as long as you maintain your foreign residence.

The physical presence test requires 330 full days in foreign countries during any 12 consecutive months. It does not care about intent, ties, or residence. It is purely about where your body was. The advantage is objectivity: if you have 330 days, you qualify, period. The disadvantage is that it is fragile. A long US visit, a medical emergency that sends you back for three weeks, or frequent business travel to the US can push you below 330.

For an American living in Canada full-time with a Canadian home, job, and family, the bona fide residence test is easier and more resilient. The physical presence test is the right tool for the person who moved mid-year (and has not yet completed a full calendar year), the person who works on short-term assignments in multiple foreign countries, or the person whose bona fide residence is contested by the IRS.

Can I get a waiver if I have to leave the foreign country early?

Yes, under limited circumstances. IRC 911(d)(4) provides a waiver of the 330-day requirement if you were required to leave a foreign country because of war, civil unrest, or similar adverse conditions, and you could reasonably have been expected to meet the 330-day threshold otherwise. You must have had a tax home in the foreign country and must have been a bona fide resident of (or physically present in) the country before the adverse conditions arose.

The IRS publishes an annual Revenue Procedure listing the countries, conditions, and qualifying dates for the waiver. If your country is not on the list for the year in question, the waiver does not apply. The waiver is narrow: it covers evacuations and departures forced by conditions beyond your control, not voluntary decisions to leave or routine business travel.

In the Canada-US corridor, this waiver is rarely relevant. Canada has not appeared on the IRS adverse conditions list in the modern history of the provision. The waiver matters most for Americans working in conflict zones or countries experiencing natural disasters.

What should I do next?

If you are deciding between the physical presence test and the bona fide residence test, the practical question is whether you have completed a full calendar year of foreign residence. If yes, the bona fide test is usually the better choice (more resilient to travel). If you moved mid-year and have not yet completed a full calendar year, the physical presence test is your route to the FEIE for the year of the move. Either way, you claim the exclusion on Form 2555, though for Americans in Canada, the foreign tax credit usually produces a better result than the FEIE because Canadian tax rates are high enough to generate excess credits.

• FEIE or foreign tax credit? Why FTC usually wins in Canada, the comparison that determines whether the FEIE is even worth claiming
• I’m American and moving to Canada, the first-year tax obligations including the FEIE election timing
• How far back can the IRS audit?, the statute of limitations for years where you claimed the FEIE
• Do I need to file Form 8840?, the closer connection exception for snowbirds (a different test from the physical presence test)
• FATCA explained, the reporting obligations that apply regardless of whether you claim the FEIE

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.