Depending on how much $ you plan on making as a contract employee you should make quarterly estimated payments to the IRS if your employer is going to send you a 1099 . The amount of the payments should be around 12-35 percent of what you earned depending on what tax bracket you will be in. Don't forget you still have to pay social security and medicare taxes. These two taxes are combined and calles the self-employee tax or SE Tax. For more info on the SE Tax go to: http://www.irs.gov/pub/irs-pdf/p533.pdf
Keep track of all expenses, uniforn costs (purchase & cleaning), cable bill (weather channel is deductible,,,no kidd'n), aviation books/magazines, milage on your vehicle,,,,etc. If you have a second job make sure you are claiming zero exemptions on your W-4 (the IRS form everyone fills out before they're added to a company's payroll), this will help offset your 2002 tax.
I only made about 7500.00 last year doing contract work and I got a refund both from state and federal. I didn't have much deductions just some mileage. So keep track of your mileage for getting to the airport. Every little bit helps.