quick question - probably been asked

Filing my taxes now - what exchange rate are we supposed to use for 2008 as they want everything about foreign earned income in US dollars/
Thanks

I can't find an exact answer but this is from the IRS website:

http://www.irs.gov/pub/irs-pdf/p4732.pdf

Exchange Rates
You must express the amounts you report on your U.S. tax return in U.S. dollars. If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U.S. dollars. Taxpayers generally use the yearly average exchange rate to report foreign-earned income that was received regularly throughout the year. However, if you had foreign transactions on specific days, you may also use the exchange rates for those days. Exchanges rates may be found at http://www.irs.gov/faqs/faq/0,,id=199668,00.html

Thanks
I looked on the federal reserve website and it said the average for 2008 was £1.8454.
Hope that is correct!!

The figure the US embassy in London has provided  for 2008 is $1.855 USD to £1 GBP.  It's "unofficial" as the IRS doesn't mandate you use a specific exchange rate as long as it's reasonably accurate.
http://www.usembassy.org.uk/irs/irsxchng.htm
http://www.usembassy.org.uk/irs/unofficial_exchange_rates_2000-2008.pdf

I was told that you have to calculate your salary for the date on which it was paid- that means if you are paid monthly, you have to get the exchange rate for the day of your pay each month. For the treasury report on foreign bank accounts you use the December 31st average.

I was told that you have to calculate your salary for the date on which it was paid- that means if you are paid monthly, you have to get the exchange rate for the day of your pay each month. For the treasury report on foreign bank accounts you use the December 31st average.

According to the IRS website you can do the exchange on your earnings either way, by using the annual average or calculate each exchange on the transaction date.

Taxpayers generally use the yearly average exchange rate to report foreign-earned income that was received regularly throughout the year. However, if you had foreign transactions on specific days, you may also use the exchange rates for those days. Exchanges rates may be found at http://www.irs.gov/faqs/faq/0,,id=199668,00.html

From: http://www.irs.gov/pub/irs-pdf/p4732.pdf