Did you have any expenses against the 1099Misc income? There are a lot of factors but basically......
You pay 15.3% Self Employment SE tax on 92.35% of your Net Profit greater than $400. The SE tax is in addition to the regular income tax on your Net Profit.
Are they reimbursing you for the Self Employment Tax on it? That's pretty nice. But I would think you would have to include that amount as income on next year's return.
