If you are a dependent on another person's tax return and you are filing your own tax return, your standard deduction can not exceed the greater of $1,100 or the sum of $350 and your individual earned income. For a self-employed individual, earned income is the net self-employment income less related expenses, not the gross figure.
He must still pay self-employment tax on that net, which represents both the employee and employer's shares of Social Security payroll taxes.
