How do I input my spouse's federal income for 2017 if he is American? Do I convert his annual income during the average annual CAD/USD exchange rate?

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How do I input my spouse's federal income for 2017 if he is American? Do I convert his annual income during the average annual CAD/USD exchange rate?

Yes. The income amount needs to be in Canadian dollars. You can use the rates posted on the Bank Of Canada site: https://www.bankofcanada.ca/rates/exchange/annual-average-exchange-rates/