Last year with pure romance isold 499.50 in retail value. My profit from that was 45% so 224.78. Do I just claim the 225 under Misc. C or none since under 400$ was made?

[MelaineC · Accepted solution]

It will depend on your other income. If the $225 is your only self-employment income for the year, you will not have to pay any self-employment tax.  However, you will have to pay income tax on it . How much income tax you have to pay depends on what tax bracket your other income puts you in. Example, if you are in the 25% bracket the tax will be $56.25 (25% of $225).  

If the $225 of self-employment income is your only income of any kind for the year, you will not have to pay any tax and you do not even have to file a tax return unless you received the advance premium tax credit for health insurance.