1040-US ELF: ELF Critical Diagnostic - Enter a minimum of 330 foreign days for the taxpayer to qualify for physical presence

Show expandable text

New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Diagnostic message

Enter a minimum of 330 foreign days for the taxpayer to qualify for physical presence.

Resolution

Open the U.S. business days and travel information, on Screen 2555, in the Foreign Exclusion folder and verify that the foreign days entered total 330 or more. When entering dates, enter dates before and after the current tax year when they apply. If days entered are less than 330, determine if you are using the Physical Presence Test OR the Bona Fide Residence Test and review the appropriate section below.

If using the physical presence test to determine the taxpayer's eligibility to take the foreign earned income exclusion, follow these steps.

  1. Access the Part III - Physical Presence Test section of Screen 2555.
  2. Verify the Principal country of employment is entered.
  3. If dates are entered in the Physical presence test from date and/or Physical Presence Test through date fields, verify the period equals 330 or more days. If the physical presence test started in a previous year, enter the date from the previous year. If the physical presence test ends in a future year, enter the future year date that would satisfy the 330 day requirement.

If the bona fide resident test is used to determine the taxpayer's eligibility to take the foreign earned income exclusion, and the foreign days entered in the U.S. business days and travel information statement do not equal 330 or more, follow these steps.

  1. Access the Part III - Physical Presence Test section at the bottom of Screen 2555.
  2. Verify that all fields in this section are blank. This includes the Principal country of employment field.

    Note: Use the following to determine whether the bona fide resident test is used to determine eligibility instead of the physical presence test:

    • In the Part II - Bona Fide Residence Test Section, if the Force bona fide residence test field is marked with an X, the bona fide residence test will be used.
    • In Forms View, access Form 2555 and verify whether Part II (located on page 1) or Part III (located on page 2) is generating. If Part II is completed, the bona fide residence test is being used to determine the taxpayer's eligibility.

Related topics

1040-US: Entering U.S. days (bona fide residence test) and travel information (physical presence test) for Form 2555

Foreign tax credits and earned income FAQs (1040)

Was this article helpful?

Thank you for the feedback!