The IRS requires that all income be reported in U.S. dollar equivalents. As it is time to begin preparing the necessary paperwork for filing U.S. Federal tax returns, it may be useful to have some exchange rates for 2008. Please note that there is NO official exchange rate. Taxpayers should use the rate that best reflects the transactions reported on their return. Yearly averages are provided for the convenience of the taxpayer. However, if there were a few foreign transactions on certain days/months, it may be preferable to use the exchange rate for that particular time frame. Additional exchange rates may be found on the U.S. Treasury website (www.fms.treas.gov/intn.html) or commercial sites such as www.oanda.com.
Two yearly averages that may be useful:
1 US Dollar = 0.54491 British Pound Sterling
1 US Dollar = 0.68341 Euro
To convert TO dollars, divide the foreign amount by the applicable decimal figure.
To convert FROM dollars, multiply the dollar amount by the applicable decimal figure.
Will the 2009 exchange rates be available on 1 Jan 2010 or later?
The IRS office at the Embassy anticipates having the unofficial* exchange rates for 2009 ready by mid January 2010.
*Please note that as it states in the blog post above: there is NO official exchange rate. Taxpayers should use the rate that best reflects the transactions reported on their return.
Please advise if 2009 rates are available. I see that the 2008 rates are still on the site.
Ann – 2009 rates are available in our blog post