do you have to pay self employment taxes on total revenue or the bottom line net income?

Question

Say I earned $1,000 on a side job and incurred $400 expenses. Do I pay Self employment tax on $1,000 or $600?

Answer 1

On the net, in your case the $600.

Answer 2

Depends on what kind of work you are doing. If you do this all the time and keep books than it's the full amount. If this is just a once in a while thing than it is after expenses. It can go either way. Best thing to do is call the IRS. Than you will know the right way.

Answer 3

Well, you can claim the expenses on your taxes, so really, you'd pay on the 600.