rjs
Level 15
Level 15

Get your taxes done using TurboTax

Just a minor correction to what Hal_Al said: If your net self-employment income is more than $432, then you pay self-employment tax on the full amount, not just the amount over $432. TurboTax will calculate the self-employment tax automatically.


It's unlikely that you have any expenses associated with the bonus, so your net self-employment income will be the full amount of the bonus, as shown on the 1099-NEC. If the bonus was more than $432 you will have to pay self-employment tax.


Self-employment income is included in your total income and you pay regular income tax on the self-employment income. Self-employment tax is in addition to the regular income tax, to make up for the fact that Social Security and Medicare taxes were not withheld from the self-employment income, like they are from your W-2 income.