First of yall the 2,000 in Jan 2024 goes on your 2024 return next year. So for 2023 you have a Net Profit of 11,500. You have to take off 1/2 of the self employment tax. If you have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for the ER portion of your self-employment taxes. The 1/2 SE Tax amount will be on Schedule 1 line 15 which goes to 1040 line 10. The self employment tax is 15.3% SE tax on 92.35% of your Net Profit.
The self employment tax on 11,500 is $1,626. 1/2 of that is $813.
$11,500 - 813 = 10,687.
