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Do I Need To Pay Self Employment Taxes If I Am Not Making A Profit?

I make $80.000 with my regular employer before tax. My wife is a student with no job. We have no Children.

I also do self-employee job as an instructor, and get paid about $1,000 each session. However, $300 is for text book materials. I get paid by checks so I also get 1099 at end of year.

My wife says my self-employee job is not worthy because I don’t make any profit but these checks are equal to my taxes to be paid. Is this true? I am in Los Angeles, California.
Self Employment Tax
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Tax Professional Answers

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Charles Woodson, EA
If your net income (profit) is less than $400 - no. Your case indicates you are making a profit ($1,000 less $300) of $700/session. That is subject to SE tax.
Leave a Comment 28 weeks ago

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Michael Cash
No. Self-Employment tax is due on your profit not your gross sales.
Leave a Comment 27 weeks ago

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