Euro Exchange Calculator Rate to US Dollar

You must convert any foreign currency, including Euros, into US dollars when reporting amounts on your US tax return. Generally, the prevailing exchange rate (spot rate) at the time of the transaction should be used for conversion. This applies to income received, expenses paid, or accrued items in Euros.

Qualified Business Units (QBUs) may be an exception. QBUs can often use a foreign currency for their functional currency. If a QBU’s functional currency isn’t the US dollar, income is determined in the functional currency and then translated to US dollars using the appropriate exchange rate.

Foreign currency gains or losses may need to be recognized on certain transactions. Consult section 988 of the Internal Revenue Code and its regulations for further guidance. US tax payments must be made in US dollars to the Internal Revenue Service (IRS).

The IRS does not have an official exchange rate and generally accepts any consistently used posted rate. If a country uses multiple exchange rates, the rate specific to your situation applies. The exchange rates provided for informational purposes do not apply when paying US taxes. The IRS uses the bank’s conversion rate on the date of conversion, not the date the IRS receives the payment, for foreign currency tax payments.

For exchange rates not listed in the provided table, consult governmental and external resources available on the IRS website regarding foreign currency and exchange rates or use any other consistently applied posted rate.

To convert from a foreign currency to US dollars, divide the foreign currency amount by the applicable yearly average exchange rate. Conversely, multiply the US dollar amount by the applicable yearly average exchange rate to convert from US dollars to a foreign currency.

The table above shows the yearly average exchange rates for converting various foreign currencies into US dollars. The “Euro Zone” row provides the Euro Exchange Calculator Rate To Us Dollar for specific years. Note that these are yearly averages, and the actual daily rate may fluctuate. You should use the specific exchange rate for the date of your transaction for accurate calculations.