FWIW, I checked on the tax question for those asking.
For the company I use, the income is in box 7, "nonemployee compensation" on the 1099 you are issued. You likely will have to pay self-employment tax on this, so keep that in mind for any quarterly estimates you pay, or, of course, if you do a self/solo/SEP 401k or IRA (I'm not up on all the differences, so consult with your tax professional), this can go towards that.
And, of course, as brewer has noted, it's pretty much free money, so having to pay taxes on it, while a bummer, still is better than not having it--it will pay for its own taxes, and then the rest above that is profit. But yes, taxes will cut into your gross (and $/hour)--I leave you to calculate that based on your own tax rate, if interested.
For people starting now, you'll get your first trade line sales in August, paid end of Sept, so won't need to worry about it too much until the 4th quarter anyways, if you do quarterly estimated payments. Otherwise you can just settle up in April when you plug that 1099 into your tax return (or hand it to your accountant, as the case may be).
Just wanted to update with an answer to that, even if it wasn't great news. :)