Is there a way you recommend to estimate how much the EIC will be? Yes, you can use this table to estimate what your EITC will be. However, if your income would increase or decrease, your estimate could end up being higher or lower. Obviously, if it is higher, that would not be an issue. But, if it is lower, say you are expecting to get $3,733 (head of household with one child) and you end up earning $10,000 more than you predicted, then your credit could drop to $1,353. This would leave you with a shortfall of close to $2,400 and you would end up having an underpayment penalty on your 2023 return. However, if you are single with no kids, the maximum EITC you can receive is around $600 ($560 for 2022, increases yearly) but at $25,000 you would not be eligible.
I can't figure out if an income of $20-25k (all self-employed) means I'm required to do the quarterly payments, or if I can just set aside a percentage of my income throughout the year to hopefully have enough when it's time to file. The IRS requires quarterly payments if you expect to owe more than $1,000 for the year or if you owed tax this year. Since you do owe tax this year and expect to owe more than $1,000 next year, you will need to make estimated payments. If your total tax due for this year was $1,000, if you pay at least that much in quarterly payments, you would be exempt from the penalty by filing form 2210.
Similarly, about the standard deduction -- does that mean, if my income is over the standard deduction amount, I will need to pay income taxes as well? Yes, if your income is over your standard deduction you will also need to pay regular income tax in addition to self-employment tax. At $25k, for 2023, you will be in the 12% tax bracket for your personal income. You calculate this by taking your earnings and subtracting the standard deduction which for 2023 will be $13,850.
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