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abf13427
Returning Member

Still a Bona Fide Resident for part of year after moving home due to COVID?

I lived in a foreign country from August 2016 to March 2020. I use the Bona Fide residence test for the FEIE for 2017, 2018, and 2019. I had to move home in March of 2020 due to COVID. Am I still able to have the money I earned from January-March 2020 deducted through the Foreign Earned Income Exclusion? Is it just prorated? I obviously have a home now in the US, but I was a Bona Fide resident through my move back in March.

3 Replies
Opus 17
Level 15

Still a Bona Fide Resident for part of year after moving home due to COVID?

No, to use the foreign earned income exclusion, you must be a resident of the foreign country for 330 days of the year.  Any changes due to COVID would have to come from Congress.  You will still be able to use the tax credit or deduction for foreign taxes paid, although it may not be quite a beneficial as excluding the income entirely. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
abf13427
Returning Member

Still a Bona Fide Resident for part of year after moving home due to COVID?

Thanks for the response. Just to clarify, I used the Bona Fide residence test and not permanent residence, so I'm not sure 330 days is my threshold. Does that affect it at all? 

Opus 17
Level 15

Still a Bona Fide Resident for part of year after moving home due to COVID?


@abf13427 wrote:

Thanks for the response. Just to clarify, I used the Bona Fide residence test and not permanent residence, so I'm not sure 330 days is my threshold. Does that affect it at all? 


It sounds like you should be able to use the bona fide resident test for the beginning of 2020.  There is an interactive tool on this IRS web page you can use to make sure.

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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