Do I need to pay self assessment tax ?

[bibekmishra1]

Hello,

I will be out of US for entire 2023. My only income would be approx 50K 401K to Roth IRA Conversion. Do I need to pay any self assessment tax OR can file the returns in 2024 directly & pay required taxes ?

Can I schedule a 15m to 30m session with an Tax expert to discuss my scenario ?

BM

[Laura_CPA]

Hi bibekmishra1, 

Happy to help! If you are out the country, you are still required to file taxes and report any earnings made in that Country (converted to USD), if any. Including your 401k to Roth IRA conversion (there's a tax assessed since you are going from a 401k pre-tax (no taxes have been paid) to a Roth IRA post-tax (taxes usually are collected up front, that's why there's a tax assessed when doing the conversion). 

Of course, there's a foreign income exclusion that you may qualify for, but you will have to run this by a tax expert via a phone call, please feel free to call us at 1-800-446-8848, we are open Monday through Friday from 5 a.m. to 5 p.m. Pacific Standard Time. 

Cheers,

Laura