It's difficult to say for sure if your calculation is exactly correct without seeing your tax return, but that is close. The main exception is that $400 of the net profit is not taxed at the 15.3% self-employment rate. Look at your Schedule SE to see this calculation.
You generally won't enter your excise taxes (sales taxes), but rather include your gross income of your sales without that tax added. If you did include it in your gross receipts, there is a category called Taxes and Licenses in the Business Expenses area where you can deduct it.
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