How much do i pay in taxes if i convert 30k ira into roth? ?

Question

This year and the next i am working in Europe. I have to file a US tax return but i don't pay anything since it is taxed in this country

Answer 1

You must report your worldwide income on your tax return. For taxes paid in the Europe you will claim foreign tax credit by filing Form 1116. Or, if you qualify, you can use Earned Income Exclusion.

http://taxipay.blogspot.com/2008/03/us-c...  

The amount that you convert from IRA to Roth IRA will be treated as your ordinary income.

Answer 2

as if you got that in a paycheck,  

Answer 3

It's taxed as ordinary income.  You may qualify for the Foreign Earned Income Exclusion on the foreign income but the amount of the converted IRA is taxed as ordinary income.  BTW, the tax rate will be as if the FEIE didn't apply.

Answer 4

As an expat, if you pay taxes abroad, then you may not have to pay taxes here IF that country has a tax treaty w/ the US. (most countries do) There will be a tax exemption up to a certain amount, around $80k. However, anything above that may be taxable.  Check w/ the IRS or the State Department for the exact amount. As per filing a tax return in the US, you would file whatever amount above the exemption threshold as "foreign earned income".  But since you already paid taxes there, you shouldn't have to pay taxes again here.

Converting IRA to Roth means you are taxed on that amount as normal income tax. Obviously I couldn't tell you the exact amount b/c I don't know your personal situation.