How it works
It applies to US citizens and US resident aliens who earn income abroad and have their tax home in a foreign country. The day count alone isn't enough without the foreign tax home.
A full day means 24 hours from midnight to midnight, spent entirely in a foreign country or countries. Days in the US, or partly in the US, don't count.
Moving between foreign countries is fine. You can travel from one foreign country to another without losing days.
The catch is time outside any country. If part of your trip is over international waters or airspace and that part takes 24 hours or more, you lose every full day it touches. The IRS example: leave Norway by ship at 10 p.m. on 6 July, reach Portugal at 6 a.m. on 8 July, and 6, 7 and 8 July don't count.
Short flights don't hurt. London at 11 p.m. to Stockholm at 5 a.m. loses nothing.
Leaving or returning to the US. Time over international waters doesn't count as foreign time. Fly out on 10 June, land in France on 11 June, and your first full day is 12 June.
US layovers. If you pass through the US between two foreign points for under 24 hours, the IRS doesn't count you as in the US.
The 12-month period can start on any day of any month, and it ends the day before the same date 12 months later. Periods can overlap, so you pick the window that works. The 330 days don't have to be in a row, which leaves room for about 35 days that don't count.
The reason you miss days doesn't matter (illness, family, vacation). The IRS only waives the minimum for leaving because of war, civil unrest or similar conditions.
The other way to qualify is the bona fide residence test: being a genuine resident of a foreign country for an uninterrupted period that includes a full tax year.
An example
Jess, a US citizen, flies overnight from Atlanta on February 3, 2026 and lands in Lisbon the morning of February 4, so her first full day is February 5. Her 12-month window runs February 5, 2026 to February 4, 2027, which is 365 days. She flies home for Thanksgiving on November 20 and lands back in Europe on December 5, so November 20 through December 5 (16 days) don't count. If she's abroad the rest of the window, she has 349 full days and passes with room to spare.
Mistakes people make
- Counting travel days. The day you leave the US and the day you land abroad usually aren't full foreign days.
- Treating a transatlantic cruise or long boat crossing as foreign time. Days on international waters don't count.
- Thinking the window has to be a calendar year. It can start any day, and picking the right start date can make the difference.
- Forgetting the tax home part. You can have 330 days abroad and still not qualify if your tax home is in the US.
- Thinking the full exclusion applies in a partial year. If only part of the tax year falls in your qualifying period, the maximum is prorated by your qualifying days in that year.
Quick answers
Do the 330 days have to be in a row?
No. You need 330 full days abroad in any 12-month stretch, which leaves room for about 35 days that don't count.
Does the 12 months have to be a calendar year?
No. It can start on any day, and periods can overlap, so you can pick the window that works.
Do travel days count?
Usually not. A full day means midnight to midnight in a foreign country, so the day you leave the US and the day you land often don't count.
Does a cruise or long ocean crossing count as time abroad?
No. Days on or over international waters don't count as a foreign country.
Where this comes from
Government sources only. Read the rule yourself.
- IRS: Foreign earned income exclusion, physical presence testirs.gov ↗
- IRS: Tax inflation adjustments for tax year 2026irs.gov ↗
- IRS Publication 54irs.gov ↗
What changed
11 Oct 2026. Corrected the travel rule to match the IRS wording.
3 Oct 2026. Checked against the IRS. The 2026 exclusion is still $132,900. No change.
A plain-language summary of the official rules. It isn't legal advice. If your situation is unusual, confirm with the relevant authority or a qualified adviser.
