Bona fide Foreign Resident Law and Legal Definition

The bona fide residence test classifies any resident who lives in any foreign country or countries for an uninterrupted period that includes an entire tax year as a Bona Fide Foreign Resident in accordance with the IRS criteria. The taxpayer falling into such a category is qualified for the foreign earned income exclusion. Bona Fide Foreign Residents should be either U.S. citizens living overseas or U.S. resident aliens of a country with which the U.S. has an official income tax treaty in effect.