You have to report all your income, including tips. The tax break for tips is entered separately. (You enter all your income including tips, then you will back out your tips later). Only the first $25,000 of tips are deductible and your total income has to be less than $150,000 to use this deduction.
https://www.irs.gov/newsroom/treasury-irs-issue-guidance-listing-occupations-where-workers-customari...
Estimated taxes depends on your overall income, deductions and credits. You will pay 15% self-employment tax on your net profit from business plus 12-22% income tax. But that word "net profit" is important. Your main expense is going to be mileage. The standard rate for 2025 is 70 cents per mile. You can also choose to use the actual expense method, but the standard mileage method is usually more beneficial for most people. Both methods, including the records you need to keep, are described in chapter 4 of IRS Publication 463.
https://www.irs.gov/forms-pubs/about-publication-463
Suppose your gross income is $5000, but you drove 1000 miles to earn that much. Your net profit would be $5000 minus (70 cents x 1000 miles) = $4300.
If you are single and have no other income and no dependents, you would set aside 15% of the first $15,000 and 30% of amounts over $15,000, of net profit. If you have other jobs, or are married and your spouse works, you may need to set aside more, because your tax rate will be higher, and if you have dependents and other deductions, you may be able to set aside less. 35% is not an unreasonable guess. But you can use various tax estimator tools to get an idea, and check with those tools over the year as things change so you can adjust if needed.
https://www.irs.gov/individuals/tax-withholding-estimator
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
