Hello Rajamubeenali,
Thank you for participating in the Ask the Experts event. As to your question, assuming you will be reporting your business activity on a Schedule C in your individual 1040 return, I always tell me clients to set aside at 25-30% of their net income for taxes. Right off the bat you will have 15.3% of your net income for the self-employment tax.
Then, that net income will also be taxed at your ordinary income tax rate according to where you fall in the income tax brackets and your filing status. There are deductions you can take for half the self-employment tax and qualified business income, so the 25-30% number is conservative as you also want to consider state taxes.
I hope that helps.
ide from the more complex situations
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