I live in the US but I'm paid a fellowship from Canada. The fellowship was awarded in Canadian dollars (ie a set amount each year, which is reported to Canada Revenue and for which I receive a tax slip), but I took the option of having them exchange the money for US funds, which they then wire to me.
When I calculated the income for my US return, I used my Canadian tax slip with the average yearly exchange rate (my fellowship was paid four times a year). Was this correct, or should i have just added up the amounts i received in US dollars? I'm particularly concerned about this as I have informational reporting (for foreign accounts) that I have to catch up on for that year as well.
amend return?
Moderator: Mark T Serbinski CA CPA
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CdnAmerican
- Posts: 245
- Joined: Tue Aug 30, 2011 12:15 am
LisaS - I suspect you are OK. The IRS website notes that there are several different approaches one can take regarding the exchange rate to use. I suspect there is a little bit of latitude on this, and I suspect that unless there is huge variation in the exchange rate, it's reasonable to do it the way you have. In fact, your way is even more accurate than just using the yearlong rate. The fact that the IRS does not even have a standard yearlong rate, to me, suggests their flexibility with this. I'm not an expert at all, but this would not seem to merit a revision. Good luck!
Not a professional opinion.