Which One Should You Choose?
If your income was spread out over the course of 2016, using the IRS yearly average rate (69.56) is generally acceptable and aligns with IRS guidelines. However, if you received the income at a specific point in time, especially at the end of the year, the Treasury Department’s year-end rate (67.8) may be more accurate.
In some cases, you can select the method that best matches the nature of your foreign income, but it’s always best to maintain consistency year after year. Consulting with a tax advisor could provide clarity for your specific situation.
Trusted Currency Conversion Sources
Here are some reliable sources for currency conversion rates:
IRS Website
The IRS provides yearly average rates and guidelines for currency conversion:
IRS Yearly Average Currency Exchange Rates
U.S. Department of the Treasury
The Treasury Department provides official exchange rates for year-end reporting:
Treasury Reporting Rates of Exchange
OANDA
A well-known source for historical and real-time exchange rates, used by financial institutions and accountants:
OANDA Currency Converter
XE
A trusted tool for real-time exchange rates and historical data:
XE Currency Converter
X-Rates
Provides daily updates on exchange rates and historical data for various currencies:
X-Rates Currency Converter
- Gocuco
