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’s the physical presence test?

The physical presence test under IRC 911(d)(1)(B) qualifies a US citizen or resident alien for the FEIE if they are physically present in a foreign country for 330 full days during any 12 consecutive months that include part of the tax year. The test is purely mechanical: count days. It does not require intent to remain, a foreign home, or ties to the foreign country.

• You could travel through 15 countries in 12 months and qualify, as long as 330 days were spent in foreign countries.
• The bona fide residence test is the subjective alternative (facts-and-circumstances: housing, employment, family, intent). The physical presence test removes that subjectivity entirely.
• 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 nationals of a treaty country.

How do I count the 330 days?

A full day runs midnight to midnight (24 hours). The IRS applies this strictly: the day you leave the US and the day you return are not qualifying days. If you depart on June 1 at 10 a.m., June 2 is your first qualifying day. The 330 days do not have to be consecutive, so short US visits are fine as long as you stay above 330 total.

• Transit between two foreign countries (without passing through the US) counts. A Toronto-to-London flight counts. Time over international waters or in the air between the US and a foreign country does not count toward or against the 330.
• Travel crossing midnight follows the midnight-to-midnight rule. If you leave Canada at 11 p.m. on March 5 and arrive in the US at 2 a.m. on March 6, March 5 counts (you were in Canada for both midnights), but March 6 does not.
• A US citizen in Canada who flies back 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.

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

The 12-month period is any 12 consecutive months and does not have to be a calendar year. You can start counting from any date, which matters for mid-year moves. The IRS lets you choose the window that gives the best result for each tax year, as long as the period is 12 consecutive months and includes some part of that tax year.

• If you moved to Canada on March 15, 2025, your first 12-month period runs March 15, 2025 to March 14, 2026. Your first qualifying day is March 16 (arrival day does not count). Subtract any US trips, and if you stay above 330, you qualify for both 2025 and 2026.
• You can overlap periods. If one 12-month window does not produce 330 days for a particular tax year, try shifting it.
• For 2026, any 12-month period that includes at least one day in 2026 works. August 1, 2025 through July 31, 2026 qualifies for a 2026 FEIE claim if you have 330 foreign-country days within that window.

What’s physical presence vs bona fide residence?

Both tests qualify you for the same exclusion (IRC 911, up to $132,900 in 2026), and you only need to pass one. The bona fide residence test requires genuine residence in a foreign country for an entire calendar year, based on facts and circumstances (housing, employment, family ties, intent). The physical presence test requires 330 full days in foreign countries during any 12 months, with no inquiry into intent or ties.

• The bona fide test is more resilient: no day-counting, so extensive travel (including US trips) does not jeopardize it. The downside is subjectivity.
• The physical presence test is objective (330 days = qualified, period) but fragile. A long US visit, a medical emergency, or frequent business travel can push you below 330.
• For an American in Canada full-time with a home, job, and family, bona fide residence is easier. The physical presence test fits mid-year movers, multi-country workers, or anyone whose bona fide residence is contested.

Can I get a waiver if I leave early?

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

• The IRS publishes an annual Revenue Procedure listing qualifying countries, conditions, and dates. If your country is not on the list, the waiver does not apply.
• The waiver covers forced evacuations and departures, not voluntary decisions or routine business travel.
• In the Canada-US corridor, this waiver is rarely relevant. Canada has not appeared on the IRS adverse conditions list. It matters most for Americans in conflict zones or disaster areas.

What should I do next?

If you have completed a full calendar year of foreign residence, the bona fide test is usually the better choice. If you moved mid-year, the physical presence test is your route to the FEIE for the move year. Either way, you claim the exclusion on Form 2555, though for Americans in Canada the foreign tax credit usually produces a better result because Canadian rates 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
• The bona fide residence test, the other way to qualify for the FEIE (intent-based, not day-count-based)
• What is your tax home?, the IRS definition that gates both the FEIE and the closer connection exception
• Foreign earned income exclusion for US expats in Canada, the full FEIE overview, housing exclusion, and why FTC usually wins

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