< Back to IRS

Wesley Hallow

Do I meet the bona fide resident test for foreign earned income exclusion?

I've been living in Japan since 2014 working on my Masters degree, which I just completed last month. During this entire time, I've maintained continuous student visas without any gaps. I also have a residence card issued by the Japanese government (not permanent residency, just a regular residence card showing I'm legally living here). I'm trying to figure out if I qualify for the foreign earned income exclusion using the bona fide resident test. I know I would definitely qualify under the physical presence test since I only visited the US for about 10 days total in 2024 (and maybe 3-4 days traveling over international waters), but I'd prefer to use the bona fide resident test if possible. From what I understand, being classified as a bona fide resident would make things easier because I wouldn't need to meticulously track every single day I spend in the US or in transit. Anyone have experience with this situation? Any advice would be super appreciated! Thanks in advance!

Justin Chang

•

The bona fide resident test is more about your intention to reside in a foreign country indefinitely rather than just physically being there. Since you've been in Japan continuously since 2014, you have a strong case, especially with your residence card. The key factors the IRS looks at include: your living situation (permanent housing vs. temporary), your family's location, personal belongings, participation in local social/cultural activities, local bank accounts, driver's license, and most importantly, your stated intention to make Japan your home. Student visas can sometimes be tricky because they're inherently temporary, but your long duration helps. When filing, you'll need to complete Form 2555 for the Foreign Earned Income Exclusion, where you'll explain your residency situation.

0 coins

Wesley Hallow

•

That's really helpful, thank you! I do have a local bank account, Japanese driver's license, and have been renting the same apartment for 3 years now. My girlfriend is Japanese and we've talked about staying here long-term. Would the IRS consider these factors as showing my intention to stay? Also, will the fact that I've been on student visas rather than work visas hurt my case?

0 coins

Justin Chang

•

Those factors definitely strengthen your case for bona fide residency. Having a local bank account, driver's license, and stable housing all demonstrate integration into Japanese society. Your relationship with a Japanese national and long-term plans further support your intention to remain in Japan. Being on student visas rather than work visas isn't ideal, but isn't disqualifying either. The IRS looks at the totality of circumstances. The length of time you've been there (10 years) is particularly compelling. When completing Form 2555, emphasize these connections and your intention to make Japan your home beyond your studies.

0 coins

Grace Thomas

•

After struggling with similar foreign income tax issues while studying abroad, I found an amazing tool that helped clarify my situation. I was living in Germany for my PhD and wasn't sure if I qualified as a bona fide resident or needed to use the physical presence test. I tried https://taxr.ai and uploaded my residence documents, visa paperwork, and rental agreement. Their system analyzed everything and provided a detailed assessment of my tax situation specifically for the foreign earned income exclusion. It confirmed I qualified under both tests but recommended using bona fide resident status since it provided more flexibility with travel. The tool also generated the proper documentation I needed to include with my Form 2555, which saved me tons of time trying to figure out what evidence would best support my case.

0 coins

How accurate was the analysis? I'm in South Korea teaching English and have permanent housing, local bank accounts, etc., but my visa needs renewal every year. I'm worried about claiming bona fide residency when my visa technically has an end date.

0 coins

Dylan Baskin

•

Sounds interesting but I'm skeptical. Did it actually help with the specific requirements for the bona fide resident test? My tax preparer told me student visas almost never qualify because they're considered temporary by definition.

0 coins

Grace Thomas

•

The analysis was surprisingly detailed and accurate. It specifically addressed the renewable visa situation and explained that regular renewal patterns actually demonstrate continued intent to reside in the country. The key is showing ongoing presence and integration into the local community, not necessarily having a permanent visa. For student visas, the tool specifically addressed this common misconception. While student status alone isn't enough, the IRS looks at the totality of circumstances. The analysis highlighted which supporting documents would most effectively demonstrate your integration into local society (banking relationships, housing contracts, community involvement) to overcome the temporary nature of student visas.

0 coins

Dylan Baskin

•

I wanted to follow up on my skepticism about taxr.ai. After our conversation, I decided to try it with my situation (teaching in Vietnam on renewable work permits for 3 years). The analysis was incredibly thorough and identified several factors I hadn't considered that strengthened my bona fide residency claim. What impressed me was how it analyzed my specific visa type against previous IRS rulings and tax court cases. It highlighted that my local property lease, utility bills in my name, and Vietnamese bank accounts were actually stronger evidence than the visa type itself. The tool generated a comprehensive foreign residence documentation package that I submitted with my return. I just heard back from my CPA who said it was some of the best-organized supporting documentation he's ever seen for a foreign earned income exclusion claim!

0 coins

Lauren Wood

•

If you're having trouble getting clear answers about your bona fide residency status, you might need to speak directly with an IRS specialist. I was in a similar situation in South Korea (student visa that transitioned to work visa) and couldn't get consistent answers from tax preparers. I tried calling the IRS international tax line for months with no luck - constant disconnections or 2+ hour wait times. Then someone recommended https://claimyr.com which has this service that gets you through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical but desperate. They got me connected to an IRS international tax specialist in about 25 minutes! The agent walked through my specific situation and confirmed that my student visa period could count toward establishing bona fide residency since I had demonstrated intent to remain by transitioning to a work visa and maintaining continuous residence.

0 coins

Ellie Lopez

•

How does this actually work? I've been trying to reach the IRS for weeks about my situation in Taiwan and either get disconnected or told the wait is over 3 hours.

0 coins

Yeah right. No way they can get you through when the IRS has hold times of hours. Sounds like a scam to get people desperate for tax help to pay for nothing.

0 coins

Lauren Wood

•

It works by using an automated system that navigates the IRS phone tree and stays on hold for you. When an agent finally picks up, you get a call connecting you directly to them. I was surprised too, but it actually works - the technology handles all the waiting and menu navigation so you don't have to. The service isn't free (I'm not affiliated with them), but considering I'd already wasted countless hours trying to get through myself, it was worth it to finally speak with someone who could give me an authoritative answer about my specific situation with student visas and the bona fide residency test.

0 coins

I need to publicly eat my words about Claimyr. After my skeptical comment, I was still desperate enough to try it because my tax filing deadline was approaching and I needed answers about my foreign income from my time teaching in Thailand. It actually worked exactly as described. I got a call back in about 35 minutes connecting me directly to an IRS international tax specialist. The agent confirmed that my situation (3 years on teacher visas with local housing and bank accounts) did qualify me for bona fide residency status despite the visa being technically "temporary." The agent even emailed me specific documentation suggestions to include with my Form 2555. This saved me from unnecessarily limiting my US travel due to the physical presence test restrictions. Sorry for doubting - sometimes good services actually exist!

0 coins

Paige Cantoni

•

Just wanted to add my experience as someone who's been through this: What really helped me prove bona fide residency status was maintaining clear documentation of my integration into local society. I was in Argentina on a series of student and then work visas for 7 years. The documentation that made the biggest difference included: - Continuous lease agreements - Local utility bills in my name - Bank statements from my Argentinian accounts - Membership in local organizations - Tax filings to the Argentinian government Even though my visas were technically temporary and renewable, showing that I was living a normal life as a resident rather than just "visiting" was what mattered to the IRS.

0 coins

Kylo Ren

•

Did you have any issues with trips back to the US during that time? I'm working in France but typically go back to the US for about 3 weeks each year for holidays with family. Worried this might disqualify me.

0 coins

Paige Cantoni

•

Short trips back to the US won't disqualify you from bona fide resident status. That's actually one of the main advantages of using the bona fide resident test instead of the physical presence test. I typically spent 3-4 weeks in the US every year visiting family, and it never affected my foreign earned income exclusion eligibility. What matters is that your "tax home" remains in France and that these visits are genuinely temporary. Document that your life is centered in France - your housing, banking, social connections, etc. The IRS understands that foreign residents still visit their home country. Just be careful not to make statements to US officials suggesting you're just "temporarily" overseas, which could contradict your bona fide resident claim.

0 coins

Has anyone used the streamlined procedure to deal with past years where they might have incorrectly not claimed the FEIE? I've been in Indonesia for 5 years but only recently realized I should have been filing US taxes (I'm a dual citizen and was confused about requirements).

0 coins

Jason Brewer

•

Yes, I used the streamlined foreign offshore procedures after living in Germany for 3 years without filing. It was fairly straightforward - filed last 3 years of returns claiming FEIE, included a statement explaining my non-willful conduct, and submitted form 14653. No penalties and got everything resolved cleanly.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today