I am a U.S. citizen currently living outside the United States, where I am a student finishing a university degree.
I have a small, U.S.-based income ($17k in 2015), and no foreign income. My total taxable interest, capital gains, & dividends come to $1500, and I have $2700 income from a rental. My line 22 income was -$4148, which entitled me to a full refund of all federal income tax paid. I am a single filer.
I expect the numbers to all be approximately the same in 2016.
I currently have an active SIMPLE IRA with $175k.
Does it make sense to convert some of that SIMPLE to a Roth, in light of my low income?
Assuming the same numbers for 2016, how much can I convert to a Roth without having to pay income taxes? Given the numbers above, could I convert $4148 (equal to my AGI loss, line 22) without paying any taxes at all?
If I convert more than that, is it at the lowest (15%) bracket? Or would I be able to convert, tax free, up to the single filer threshold where the 15% bracket starts?