Have a Tax Question? Ask a Tax Expert
Unfortunately your situation has already been settled by a tax court case, the Tax Court decided in Perez v. Commissioner, 144 T.C. 4, (2015), and concluded definitively that these amounts represent taxable income.
When the amount is added to your income then that increased all. If you look there is most likely Self Employment tax applied as well.
This is the portion of the FICA tax normally paid by an employer for an employee. Those that receive payments outside employment have to pay all.
If you had any expenses yourself those may reduce your income and the tax.
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