1099 from Canada

[Oh Baby!]

Client gave me his tax documents and included was a 1099 he received from a company in Canada which shows that he received $15,000. I assume that is Canadian, so what exchange rate do I use since he earned the money over the course of a year?

[Maribeth]

Client gave me his tax documents and included was a 1099 he received from a company in Canada which shows that he received $15,000. I assume that is Canadian, so what exchange rate do I use since he earned the money over the course of a year?

Average for the year is about 1.07. The highs were at the beginning of 2007 and were about 1.17; for the last 3 months of the year, it was just about par.

Maribeth

[JohnH]

Shouldn't you ask the company or the client to be sure? After all, the transmittal copy of the 1099 shows the same info as the Copy B the client received.

I have a client who is employed by a Canadian company. He receives a W-2, but I don't convert it to Canadian $. If he received a 1099, I'd want to inquire before reporting anything.

[Catherine]

Client gave me his tax documents and included was a 1099 he received from a company in Canada which shows that he received $15,000. I assume that is Canadian, so what exchange rate do I use since he earned the money over the course of a year?

Don't assume; ask. Lots of Canadian companies keep US-dollar accounts for paying US vendors. Others convert before sending paperwork -- you may end up converting something that doesn't need it.

Catherine