Yes. It's on line 27 of form 1040. It's not 7.689% of your gross business income. The amount is 1/2 of your self employment tax, as calculated on Schedule SE; which is 92.35% of 7.65% of your net (not gross) business income.
The deduction (adjustment to income) is before income tax is calculated. Self Employment Tax (SET) (social security and medicare tax) is calculated separately on Schedule SE. It is calculated on 92.35% of your net business income. Which is the same as saying 7.65% is deducted before SET is calculated
