Can I claim Bona fide Residency as a Defense Contractor in Kuwait?

[cmcmi007]

I have been back here since 2022 and will not meet the Physical Presence Test requirement for 2023. I need to see if I can qualify

[DaveF1006]

To clarify, are you a US citizen and was working as a foreign contractor in Kuwait?

[cmcmi007]

Yes, I am a US Citizen working for a company that supports the US Armed Forces. Been here again since 2022.

[DavidD66]

Maybe.  Based on the very limited information you provided, you could meet the bona fide residence test.  According to the IRS 

You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. If you are a calendar year taxpayer, an entire tax year is from January 1st through December 31st. During your period of bona fide residence in a foreign country, you may leave that foreign country for brief or temporary trips back to the United States or elsewhere so long as you clearly intend to return to your foreign residence or to a new foreign bona fide residence without unreasonable delay.

To see if you meet the test of bona fide residence in a foreign country, you must find out if you have established such a residence in a foreign country. If you go there to work for an indefinite or extended period and you set up permanent quarters there for yourself and your family, you probably have established a bona fide residence in a foreign country, even though you intend to return eventually to the United States.

Whether you are a bona fide resident of a foreign country is determined by the facts of your situation and may include such factors as your intention or purpose for being in the foreign country, your activities in the foreign country, and whether you paid taxes to the foreign country, among other things. The IRS decides whether you qualify as a bona fide resident of a foreign country largely on the basis of facts you report on Form 2555, Foreign Earned Income. The Internal Revenue Service (IRS) cannot make this determination until you file Form 2555. You must also show the IRS that you have been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year

You will have to file your tax return and include Form 2555 to see if the IRS makes the determination that you meet the test.  If the IRS determines that you meet the bona fide residence text, and it began in 2022, you may want to file an amended return to take the Foreign Earned Income Credit for the part of 2022 you were a bona fide resident of Kuwait.

[cmcmi007]

Yes, I definitely understand. I also saw that there is an exemption for the abode requirement if you are in a combat zone. For 2022,  I used the Physical Presence Test to qualify for FEIE. For 2023, I will use Bonafide since I won't meet the Physical Presence. Thanks for your feedback!