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Your son would report the $10K of income in your example and then deduct any expenses (tools, materials, etc)he incurred to earn this income.
The net profit is then subject to Self-Employment (SE)Tax. The SE rate for 2016 is 15.3%
Your son would report the $10K of income in your example and then deduct any expenses (tools, materials, etc)he incurred to earn this income.
The net profit is then subject to Self-Employment (SE)Tax. The SE rate for 2016 is 15.3%
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