Bona Fide Residence Test

Bona Fide Residence Test

The Bona Fide Residence Test is often misunderstood by expatriate taxpayers.  In order to qualify there are many rules and regulations.

Residency in a foreign country alone does not qualify you for this classification.

Qualifications for the Bona Fide Resident Test

To be eligible for the Bona Fide Resident Test you must meet all four of the requirements below:

–          U.S. Citizen (or a U.S. resident alien of countries that share a U.S. tax treaty)

–          You have a residency in a foreign country

–          You have been in living in your foreign country for the entire calendar year starting January 1 thru December 31.

–          You have no intentions of coming back to the U.S. anytime soon.

–          If you are under an employment contract, it must be considered long term or without a specific end date.

The qualifications for the Bona Fide Resident Test can be confusing.  If you have questions or concerns about this please contact us.

Qualifying for the test can save you thousands of dollars each year. The IRS will handle each claim case by case, since a large part is based on future intent.   If you need assistance in determining your status, give us a call…we are happy to help you through the required qualifications