If I Take a Cruise Departing from the US, How Will it Affect my Physical Presence Test?
Q&A: If I take a cruise departing from the States, how will it affect my Physical Presence Test?
Q: I am a US expat living in Brazil. I am trying to find some data on US expats taking cruises. I recall something about if a cruise departs from a US port, it will still be considered as time in the US and would count against the physical presence requirements. I have checked the IRS website as well as the State Dept Travel website, but I have been unsuccessful in finding the answer to this question.
A: If you are living in Brazil, then your tax home is Brazil. That doesn’t change because you are on a cruise for a week or two. In this instance, you are still outside of the US and you have established a tax home already.
However, all bets are off if you are wondering if you can live on a cruise ship and also qualify for the Foreign Earned Income Exclusion.
The Physical Presence Test has two parts:
- Tax Home
- 330 days
You must meet both.