The Physical Presence Test (PPT) requires you to be physically present in a foreign country (or countries) for 330 full days. It sounds straightforward, but the IRS definition of a “full day” is where the most costly mistakes are made.
If your day count is off by just one day, your entire eligibility for the FEIE is lost, potentially costing you over $130,000 in tax savings.
The IRS Definition of a “Full Day”
According to IRS Publication 54, a “full day” must meet two stringent criteria:
1. The 24-Hour Midnight Rule: A full day is defined as 24 consecutive hours, beginning and ending at midnight. 2. Location Exclusion: You must be physically present in a foreign country for that entire 24-hour period.
This means any day—even a short one—where you set foot (or air) on US soil during that 24-hour cycle cannot be counted toward the 330-day requirement.
The Most Common Day-Counting Traps
Trap 1: The Arrival/Departure Day Confusion If your flight to a foreign country leaves at 10:00 AM from the US, that day cannot be counted as a foreign day, even if you land and spend 12 hours abroad. Similarly, the day you arrive back in the US is a US day. Only full 24-hour periods entirely outside the US count.
Trap 2: The US Airport Layover Even if you are merely in transit through a US airport (e.g., flying from Canada to Mexico with a connection in Detroit) and never leave the terminal, those hours count as US presence. That day is a US day and cannot be counted toward the 330 foreign days.
Trap 3: US Territorial Waters/Airspace If you are traveling by boat, cruise ship, or private yacht, spending time in US territorial waters can disqualify a day. Similarly, flying over US airspace, while less common for international flights, can technically be an issue. Always err on the side of caution.
Why Spreadsheets Fail This Test
A spreadsheet can track dates, but it cannot track the hour-by-hour detail required to ensure the Midnight Rule is consistently met. This level of granularity must be applied to every single entry and transit day.
When the stakes are over $130,000, you need an agent that calculates based on the IRS’s 24-hour rule, not just a list of country entry stamps.
Are you sure your travel records account for the Midnight Rule?
The risk of a single-hour mistake is too high. The ResidencyCheck Validation Test is built on IRS Publication 54’s strict definition of a “full day,” calculating your travel history to the precise 24-hour standard to guarantee compliance.
Stop risking your tax savings on manual hour-counting. Start your ResidencyCheck AI Agent today.