Here I have an interesting situation. I am a former American citizen, expatriated (non-covered). I still have my Roth IRA account. I earn money working for a UK company with a US parent, listed on the NYSE. The employer issues me RSUs periodically, upon which I pay UK income tax at the time of the RSU distribution.
The shares end up in my US based brokerage account, from which I typically sell quickly to avoid capital gain/loss, and transfer the money to a US based USD-denominated account.
I do not consider that I earn any money in the United States so I do not file American taxes. So here comes my question:
Can I choose to consider that some of my RSU funds are earned in the USA, and therefore put that money into my Roth IRA? For example, if USD 10,000 post-tax income appears annually in my accounts, can I elect to say that I feel $1000 of this was earned in the USA, file a 1040 for line 21 "Other Income" $1000 earnings, pay $0 tax because that's beneath the threshold, and then deposit $1000 into my Roth IRA?
Alternately, if I were to hold onto the shares and they generate $1000 in short term capital gain, can I then file this as earned income in the USA and pay that $1000 into the Roth IRA?