Sorry- but the amount in Box 7 of the 1099-MISC is not particularly relevant.
When you have a business/ Schedule C, your compensation for IRA contribution is your net income (loss), not your gross income. If you have a net loss, you have no compensation for purposes of an IRA contribution. IRA contribution rules relate to earned income. Gross Schedule C income is not considered one's earned income.
https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230355
from link above:
Self-employment income. If you are self-employed (a sole proprietor or a partner), compensation is the
net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of:
The deduction for contributions made on your behalf to retirement plans, and
The deduction allowed for the deductible part of your self-employment taxes.
Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs.
Self-employment loss. If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation.
