You need to report your gross income as well as any legitimate expenses. Then, your net profit is subject to 15.3% self-employment tax.
You also have to subtract the deductible portion of your self-employment income (half the self-employment tax or 7.65%) from your self-employment income, to determine your eligible contribution. So your compensation for purposes of contributing to an IRA will max out at 92.35% of your net profit from self-employment.
https://www.irs.gov/retirement-plans/self-employed-individuals-calculating-your-own-retirement-plan-...
