I am retired. Most of my income is now from dividends, interest, a pension, etc., (I am not yet collecting social security) but I did make just under $400 this year at a side gig as an independent contractor. I understand that if you make $400 or more, you need to pay a 15.3% self-employment tax, on top of income tax. Would the 15.3% tax only be applied to any amount OVER $400, or would it then apply to the entire amount earned as an independent contractor? I will probably make more than $400 at this side gig next year so just planning ahead! Thanks
