If the exchange rate is 1.27 and .78 = which one do I put in the exchange rate box? I received American money.

[TurboTaxJeffrey · Accepted solution]

You will use 1.27.

[canmorejim]

Why use 1.27  (Cdn$/US$)  in this box if we enter the amount in Cdn$ anyway?  What does TurboTax do with the 1.27 exchange rate?  I notice it DOES make a difference, because entering 0.78 (US$/Cdn$) significantly lowers the amount of taxes I owe to CRA (much better for me!).  Finally, if we are supposed to use Cdn$/US$, PLEASE just put that most helpful information on the page!!  Merci beaucoup!

[TurboTaxJeffrey]

If you enter the amount in CDN funds, of course you won't enter an exchange rate.  However if you enter the foreign currency amount, you would enter the exchange rate also.

As to the rate to use...if you are converting from US to CDN you use 1.27.  The US dollar is worth more than the CDN dollar.

[TurboTaxJeffrey]

The discussions are not false...ultimately the income is reported on the tax return in CDN funds.  However, you can enter the amount in the foreign currency, especially if you have more than one amount to enter, and then include the proper exchange rate, and the software will calculate accordingly.