Thursday, February 25, 2016

Official IRS tax return USD to CNY (RMB) exchange rate (2016)

Ahoy from Amoy (historic Xiamen, China).

It's tax time! Don't just guess at the official currency exchange rate for Chinese Yuan to USD. The IRS official rate works in your favor! When trying to figure out how much I'd earned here in Xiamen, China, and how much taxes I'd paid.  I Googled--and found that the IRS has a tax table for the major currencies of the world, going back for several years. In 2016, it is 1USD = 6.489 CNY.

And the IRS' figure worked to my advantage--much better than what I would have guessed the rate would have been.  Though they say that if you were paid throughout the year in the foreign currency, they'll give you a bit of leeway if you do the rate yourself.

Anyway--if you want to know the official internal revenue service currency exchange rate for your tax return, try this link for IRS Yearly Average Currency Exchange Rates!

By the way, whenever I seek IRS info, I get hundreds of links that are not IRS--and they can be quite tricky.  I've found, after decades in Xiamen, that it is safest to go direct to the IRS -- or some firm that is very reputable, such as H&R Block.  Whenever I've been really stuck, I've just phoned (or Skyped) IRS, and found them to be very helpful and patient.  The last one I spoke to told me that frankly, he did not know, but he searched while he had me online--a full 20 minutes, and was extremely helpful.  It was a good reminder for me that, while I might hate the idea of paying taxes, the people that work there are people!

And as a Chinese friend here said to me, the great thing about paying income tax is that you have an income to tax.

With today's economy as it is (30% unemployment in our hometown of Reedley, California), that is certainly the truth.

Enjoy Amoy!

Bill Brown Xiamen University

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