There's a way that you only have to pay self employment on the money and not income tax, but it involves opening a solo 401k and contributing to that as a sole proprietor, it's pretty much where 90% of my earnings went last year. All depends if you need the money now or can save for the future.Unfortunately when I started this I had no clue about any of it and it was more trial and error. It wasn't until I started following forums to help me understand what I was doing better. I still am very novice am not able to put in as many hours as a lot of others but it make us a nice bit of money for extras. (Those taxes though)