Why This Matters

In cross-border taxation, the number of days spent in a particular country or state can directly affect tax residency, income sourcing, and filing obligations. For foreign nationals entering the U.S. and U.S. taxpayers living abroad, even short periods of time spent working in the United States may impact eligibility for tax benefits, create U.S.-source income, or trigger federal and state tax obligations. That’s why tax preparers closely track arrival dates, departure dates, and U.S. workdays. Accurate records are essential for proper reporting and avoiding unexpected tax exposure.

1. U.S. days affect the Foreign Earned Income Exclusion (FEIE)

Many U.S. citizens and residents abroad claim the FEIE, which allows exclusion of foreign-earned income if you have a foreign tax home and meet either the bona fide residence test or physical presence test.

The physical presence test requires at least 330 full days in foreign countries over 12 consecutive months. Travel days matter because partial days in the U.S. may reduce your qualifying foreign days. Even a short U.S. visit can push you below the threshold, affecting your eligibility.

Your tax home is generally your main place of business abroad. Extended time in the U.S. can complicate this determination, so exact travel dates are crucial.

2. U.S. workdays can be U.S.-source income

Income is sourced where the work is performed. If you perform services in the U.S., even for a foreign employer, that portion of your income may be considered U.S.-source.

Example: Five workdays in Boston for a Swiss employer could be treated as U.S.-source income. Compensation is usually allocated based on the ratio of U.S. workdays to total workdays.

3. FEIE does not cover U.S.-source income

Only foreign-earned income qualifies for the FEIE. Income earned while physically in the U.S. generally cannot be excluded, regardless of the employer’s location or currency of payment.

4. Tax treaties may alter, but don’t remove, the day count requirement

Treaties can affect which country has the primary taxing right and may reduce U.S. tax for short visits. Most treaties include day-count rules, often tied to a maximum number of U.S. days. Your preparer must track exact days to apply these rules correctly.

5. Self-Employed taxpayers must track U.S. workdays

Independent contractors and consultants also source income based on location of service. Remote work, meetings, or client calls while in the U.S. may generate U.S.-source self-employment income.

6. States may tax work performed there

Each state has its own rules. Work physically performed in a state may create a nonresident filing obligation, even for short visits. Some states, like New York, tax individuals who spend enough time there, even without being formally employed in the state.

7. Remote work counts as U.S. workdays

“Working in the U.S.” isn’t limited to office visits or meetings. Calls, emails, reports, coding, or any professional services performed while physically in the U.S. count as U.S. workdays.

8. Long visits can trigger state residency

Extended time in a state can create residency for tax purposes, potentially taxing all income, not just U.S.-earned income.

9. Preparers need specific workdays, not just travel days

A preparer needs to know:

• Arrival and departure dates
• Which days were actual workdays
• State location of work
• Employment type (employee or self-employed)
• Employer details and whether income is linked to a U.S. office 

10. Keeping records simplifies reporting

Maintain a simple calendar of travel and workdays. Useful records include flight itineraries, passport stamps, hotel receipts, work calendars, timesheets, client invoices, and notes on work locations. Accuracy is more important than format.

11. Leaving a state may not terminate state residency

Even worse than having a portion of one’s income still sourced to one’s previous state is the possibility that one’s former state will assert that residency was never terminated and as such the taxpayer continues to be subject to full taxation. This is a topic for another day.