Tl;dr. I work 2 jobs, purchased a house, and got married all within the last year. My side hobby is starting to become profitable and I might rent out one of my rooms starting in 2018. I normally like doing my own taxes and tracking my own $$. But with all these changes I am worried about missing out on benefits. Would it be worth finding an accountant? Or at least consider professional tax service?
Income: I work 2 jobs. I'm a Federal employee salaried at $67,000 and a part time job that makes about $14,000 for a combined gross income of just over $81,000. I'm considering renting a spare room to a friend starting in April. I've looked at r/legaladvice's landlord & tenants guide and I feel confident that I'll be a functional landlord. I have a lease drawn up and I've read lots of cautionary tales. Additional income would be $5,000 per year from renting. My craftsman hobby just turned a profit this past year, I made $2000 profit selling my works. Normally my products are gifts or done at-cost, but last year i had some business commissions and I made more money than expected. If this trend continues, when do I need to declare this hobby as a source of income?
Savings: $10,000 in employer's 401k program, and $4,000 in emergency fund (aprox 3 months expenses). I contribute the max amount to my 401k that my employer will match, which adds about $5,000 combined each year. I'll be vested in the company this Sept.
Expenses: House was purchased with a VA loan $125,000 @ 3.5%. After all the other things, HOA dues, and property taxes, I pay $780/month for my home. Water&sewage are $60, electric is $100 in summer, $250 in winter. Car is paid off, insurance is $50/ month. Student loans total $18,000 and payments are $380/month. No credit card debt.
Total debt: $143,000
Monthly expenses: $1,370
Monthly income: $3,600 (after taxes, insurance, and retirement contributions).
I eat out WAY too much, and I spend most of my unallocated monthly income on home improvement, project supplies, MTG cards, and travel.
My wife and I have elected not to combine income yet, as she is teaching internationally and I do not rely on her income to sustain our stateside lifestyle. I know her take-home pay is about $25,000 after taxes. This will likely go up after she decides she's done teaching in China. My wife's student loans will be paid off after 5 years, I do not know the total. So far we have always filed separately.
So, I guess there's 3 questions in that wall of text:
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Should I continue to file my own taxes?
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At what point should additional income be declared?
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Is this whole financial situation significantly complex to justify an accountant?
Submitted January 05, 2018 at 09:10AM by FinanceAlt112358 http://ift.tt/2CFIo7T
