Your net income from a service business would be the income received from the contracts less any associated expenses. As you do not have product that is being sold; expenses would be overhead you incur in the performance of the services (training, business use internet, office rent, etc.) Here is a link to an TurboTax article that outlines business deductions you may be able to claim on your tax return.
As you do not know exactly what income will be earned and expenses incurred until you have accepted proposals, you would most likely have to calculate your projected net income each quarter as your estimates may vary.
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