Hello Olivia
The process of whether or not, when, and how to make quarterly estimated tax payments can be confusing and it is very case-by-case basis for each taxpayer given their unique circumstance(s).
A taxpayer must make estimated tax payments for the current tax year if both of the following apply: 1) expect to owe at least $1,000 in taxes after factoring in tax withheld and refundable credits and 2) expect sum of tax withheld and refundable credits to be less than 90% of the tax shown in their current year tax return or less than 100% of the tax shown on their prior year return.
We are not at liberty of being able to provide specifics in numbers as far as how much in estimated tax payments you should make per quarter, since the quarterly amounts are projections based on a variety of factors that vary for each individual taxpayer, hence why the tax payments are estimates.
The main ways to make estimated tax payments are as follows: 1) including payment with Form1040-ES vouchers (these vouchers have a pre-determined payment amount on them) or 2) electronically by going the online route to IRS.gov/payments or mobile route using the IRS2Go app
Quarterly estimated tax payments are different from tax deductions.
This is a general summary of the tax formula: Income minus above line deductions = AGI, then AGI minus below line deductions = Taxable Income, then Taxable Income times Tax rate = Total Tax, then, Total Tax minus credits minus tax withholdings minus estimated tax payments = Tax owed or tax refund or 0 *withholdings are taxes withheld from your pay*
Estimated tax payments are usually made quarterly: Q1 (January-March) w/payment due April 15th, Q2 (April-May) w/ payment due June 15th, Q3 (June-August), w/ payment due September 15th, and Q4 (September-December), w/ payment due January 15 of the following year.
How much in quarterly tax payments you should make is dependent on projected income amount for the current tax year you are making the payments for or tax liability from the prior tax year. In the case of the latter, you will typically be provided 4 quarterly vouchers, each with an amount that is suggested you pay quarterly to avoid underpayment in tax for the subsequent tax year (current tax year) based on analysis of outcome from prior tax year.
Whether or not you need to make estimated payments and how much in payments to make is dependent on your situation, specifically how profitable your business will be for the current tax year. You mentioned that you set aside 30% for each amount of revenue you receive. As long as it is affordable for you to do so, then you can continue with the approach.
