How can I claim Bona Fide Residency?

I have been living abroad for the last five years. I intend to live there for a while.

I have been filing my Income Tax with the physical presence test.

The reason for the question is because I had to return to the U.S. of A. for several months for business. After the trip was concluded, I returned to my place of resident abroad.

Thank you.

How can I claim Bona Fide Residency?

I have been living abroad for the last five years. I intend to live there for a while.

Claiming Bona Fide Residncy is easy. To claim the foreign earned income exclusion you currently file Form 2555 EZ or Form 2555. On the EZ form simply check the box, supply your initial date of residence and NA for final date of residence. Fill in the rest of form as if you had used the physical presence test. Form 2555 asks more questions (in Part II), but they seem to be self-explanatory. As long as you kept your principal residence abroad for one complete tax year, you should be able to substanciate your clsim if audited.

More difficult is achieving a breakdown of income between foreign and US. Your work performed during your 5 months in the US is fully taxable as US source income. You need a calenadar record of days worked here and abroad.

See Pub 54(available for browsing and download at IRS web site) for details. Also, your taxable income may be affected by a tax treaty beween US and your country of residence.