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That income will be taxable and should be reported on your tax return.Depending on classification - reporting is different.If that is hobby - report that income on form 1040 line 21 and it will not be subject to FICA.If that activity is your business - report that income on schedule C as self-employment income - and you will deduct qualified business expenses - so NET self-employment income will be transferred to form 1040 line 12. If your net self-employment income is above $400 - it will be subject to self-employment tax (that is equivalent to FICA).
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You will report your income and may deduct qualified expenses.- you may report all business income and expenses -on the schedule C -http://www.irs.gov/pub/irs-pdf/f1040sc.pdfThe net income (after deductions) will be reported on the form 1040 line 12 -http://www.irs.gov/pub/irs-pdf/f1040.pdfIf the business has net income over $400, it may be required to file Schedule SE, Self-Employment Taxhttp://www.irs.gov/pub/irs-pdf/f1040se.pdfand net self-employment income is subject to 15.3% self-employment tax.Self-employment taxes from schedule SE will go to the form 1040 line 57 -http://www.irs.gov/pub/irs-pdf/f1040.pdfAlso - you will deduct half of self-employment taxes on the line 27.Generally - that all you needs tax purposes.Please review all possible deductions - that might help to reduce income tax liability.
Let me know if you need any help with reporting.