Using YNAB with 1099 Side Income

I have been using YNAB for a little over a year and it’s been great. I have a full time 9-5 job, but I am also going to start coaching at the gym I work out at. I learned that it is a 1099 gig instead of a W2 job. Not a huge deal and more or less makes sense.

Knowing that I will be paid as an independent contractor, I am looking to figure out how others with similar situations (where 1099 is not their primary income source) utilize YNAB to their advantage. I don’t think I will be taking in more than $200/month from this job, at least for the start, so the money is minuscule in comparison to my 9-5 job.

I have two main questions, but if anyone had any other tips, I would love to hear them:

\- How do you manage setting aside taxes? My plan was to put 50% of each check into a “Taxes” category, and then after I do my taxes in the following year give myself any leftover funds for fun/savings. The concern I have is that I don’t know how to manage the funds at the beginning of the new year before I do my taxes from the previous year. Should I make separate 2026 Taxes and 2027 Taxes categories?

\- How do you leverage YNAB to keep track of things that you can write off when tax time comes? A flag?

Thanks in advance!