From the IRS website:
Quote:
Self-employed individuals, sole-proprietors, independent contractors and persons who have net earnings of $400 or more are required to pay self-employment tax by filing Schedule SE (PDF), attached to their Form 1040, U.S. Individual Income Tax Return.
Maybe that’s the $400 you’re thinking of?
If your self-employment income is less than $400, you’re off the hook, otherwise Schedule SE will hit you up for the 15.3% I mentioned in the previous message.
If you’ve been paying $400 instead of 15.3% of your income, I’d say you have an unpleasant surprise coming.