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When reporting foreign earned income in US dollar amounts, do I convert using the current exchange rate, or the most frequent exchange rate from last year?
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Deductions & credits
This is from the IRS website. It looks like you can use any posted exchange rate for the year.
1. When converting foreign currency to U.S. currency for purposes of filing a U.S. tax return, what foreign currency exchange rate should I use?
The Internal Revenue Service has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently.
If you have a single transaction, such as the sale of a business that occurred on a single day, use the exchange rate for that day. However, if you receive income evenly throughout the tax year, you may translate the foreign currency to U.S. dollars using the yearly average currency exchange rate for the tax year.
If there is more than one exchange rate, use the one that applies to the facts and circumstances on a consistent basis. Refer to the Foreign Currency and Currency Exchange Rates web page.
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Deductions & credits
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