He should only have to pay self employment taxes on self employment income, which at $1500 & 15% indicates he was bringing in 10k / year in google ads, which seems reasonable with those traffic levels. That is hardly breaking even unless he was running it on a Cray.
The sorry fact is while you may think your tax rate is 15% or 25%, there is always that extra 15%, even for the employed. In employee's case, they pay half (FICA) and the employer pays half, which of course reduces real earning potential by that amount. It's a scam to talk about taxes rates and only quote the federal income tax rate.
The sorry fact is while you may think your tax rate is 15% or 25%, there is always that extra 15%, even for the employed. In employee's case, they pay half (FICA) and the employer pays half, which of course reduces real earning potential by that amount. It's a scam to talk about taxes rates and only quote the federal income tax rate.