<prompt> Human: Ive been doing some computer stuff for a new doctor friend this year and now that hes finally up and working he paid me 20k all at once. Hes still saying I can write stuff off and lower my taxes as hes paying me as a 1099 contractor. Ive always worked for a company and have zero knowledge about working on the side. At my primary job Im making out my 403b retirement savings already. Im also contributing the maximum 5500 for a Roth IRA.Should I treat this 20k as any other money I receive or should I have a separate account? Ill be getting paid monthly starting next year.So here I am looking for some guidance on what to do next, are there any resources that I should start looking into first?Assistant: Put 7.5k away for taxes.Create a savings plan and work it. What of your income even goes towards retirement? What do you even want this ratio to be? Do you have debt? Do you have an appropriate cash reserve?Human: I have savings and money in betterment that I dont need to take out and am maxed out for my retirement contribution which I believe is 12 as my employer matches 100 up to that. I dont foresee needing to take out any money from savings or betterment within the next 5 years.  <response>: Ive mentioned this in other posts, but you can set up a SEP IRA for your 1099 income, with contributions limited to the lesser of 25 of your income or 55k, which is pre tax lowers your taxable income. These contributions are also separate from your IRA contribution limits. 