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Greenville Business Magazine

The Business Narrative: Tax Time

Jan 05, 2023 09:50AM ● By David Dykes

Final 2022 Quarterly Estimated Tax Payment Due Jan. 17 

Many taxpayers make quarterly estimated tax payments during the year to stay current on their taxes, but many who should don't. They overlook this step.

The Internal Revenue Service urged those who paid too little tax in 2022 to make a fourth quarter payment on or before Jan. 17 to avoid an unexpected potential tax bill or penalty when they file in 2023.

Taxes are normally paid throughout the year by withholding tax from paychecks or by making quarterly estimated tax payments to the IRS or by a combination of both.

Individuals do this because income taxes are pay-as-you-go, meaning taxpayers need to pay most of their tax during the year as income is earned or received.

Who needs to make a payment?

Taxpayers who earn or receive income that is not subject to tax withholding such as self-employed people or independent contractors should pay their taxes quarterly to the IRS.

In addition, people who owed tax when they filed their current year tax return often find themselves in the same situation again when they file the next year. Taxpayers in this situation normally include: 

* Those who itemized in the past but are now taking the standard deduction,

* Two wage-earner households,

* Employees with non-wage sources of income such as dividends,

* Those with complex tax situations and/or 

* Those who failed to increase their tax withholding.

What’s taxable?

The IRS reminds people that most income is taxable. This includes unemployment income, refund interest and income from the gig economy and digital assets. 

When estimating quarterly tax payments, taxpayers should include all forms of earned income, including from part-time work, side jobs or the sale of goods. 

Also, various financial transactions, especially late in the year, can often have an unexpected tax impact. Examples include year-end and holiday bonuses, stock dividends, capital gain distributions from mutual funds, and stocks, bonds, virtual currency, real estate or other property sold at a profit.

Delay in requirement for Forms 1099-K

On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600.

For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions. Last week, the IRS also issued Frequently Asked Questions to help people who may receive Forms 1099-K.

Reporting doesn't impact a taxpayer's responsibility to accurately report all income, whether or not they receive a Form 1099-K or other information return (such as Form 1099-MISC, Miscellaneous Information; Form 1099-NEC, Nonemployee Compensation; etc.).

How to make an estimated tax payment

The fastest and easiest way to make an estimated tax payment is to do so electronically using IRS Direct Pay. Taxpayers can schedule a payment in advance of the January deadline.

Taxpayers can now also make a payment through their IRS Online Account. There they can see their payment history, any pending or recent payments and other useful tax information. The Electronic Filing Tax Payment System, or EFTPS, is an excellent choice as well.

The IRS does not charge a fee for these services. Plus, using these or other electronic payment options ensures that a payment gets credited promptly. More information on other payment options is available at

Act now to avoid a penalty

Either payment method – withholding or estimated tax payments – or a combination of the two, can help avoid a surprise tax bill at tax time and the accompanying penalty that often applies.

If a taxpayer failed to make required quarterly estimated tax payments earlier in the year, making a payment soon to cover these missed payments will usually lessen and may even eliminate any possible penalty. 

Stay current using the Withholding Estimator

The Tax Withholding Estimator, available on, can often help people determine if they need to make an estimated tax payment. It also helps people calculate the correct amount of tax to withhold throughout the year based on their complete set of tax facts and circumstances.

Alternatively, taxpayers can use the worksheet included with estimated tax form 1040-ES, or read through Publication 505, Tax Withholding and Estimated Tax, available on Both are excellent resources.

Planning ahead

It’s never too early to get ready for the tax-filing season. For more tips and resources, check out the Get Ready page on

SCRA Announces New Members, Grant Funding

Secure Process Intelligence and Tandem Concepts were accepted as South Carolina Research Authority Member Companies. Real Motors and Soil Economy received new grant funding.

 All SCRA Member Companies receive coaching, access to experts in SCRA’s Resource Partner Network, eligibility to apply for grant funding, and the potential to be considered for investment from SCRA’s investment affiliate, SC Launch Inc.

Real Motors Inc. received a $25,000 Project Development Fund Grant. The Greenville-based electric motorcycle manufacturer is developing an affordable, light-duty electric motorcycle targeted at urban commuting. 

Secure Process Intelligence LLC was accepted as an SCRA Member Company. The Fort Mill-based information technology company provides Industry 4.0 solutions that optimize operations with a cloud dashboard.

Soil Economy LLC received a $25,000 Project Development Fund Grant. The Greenville-based startup from Bob Jones University helps carbon registries and developers standardize and improve how they measure carbon levels in the soil. Their research team provides a unified standard to verify and sell carbon credits. 

Tandem Concepts Inc. was accepted as an SCRA Member Company. The Charleston-based information technology company automates supply chain operations with its services that include integrated dispatchers, credit pre-approvals, automated order entries, and instant bill reconciliation. 

Grant funding is made possible, in part, by the Industry Partnership Fund contributions that fuel the state’s innovation economy.

Contributors to the IPF receive a dollar-for-dollar state tax credit.

2023 Appalachian Regional Commission States' Co-Chair Is Named

Kentucky Gov. Andy Beshear has been elected by his fellow Appalachian governors to serve as the 2023 Appalachian Regional Commission (ARC) states’ co-chair.

As part of ARC’s federal-state partnership structure, the states’ co-chair works collaboratively with the ARC federal co-chair and fellow Appalachian state governors to invest in economic and community growth across the region’s 423 counties in 13 states.

In addition to facilitating ARC investments across the region, the states’ co-chair also hosts ARC’s annual conference.  

ARC’s footprint spans across 13 states, including all of West Virginia – the only state completely within the Appalachian Region – and parts of 12 other states: Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia.

Beshear will serve as ARC’s 70th states’ co-chair and the first from Kentucky since his father, former Gov. Steven Beshear, served in the role in 2015.  

“ARC investments are building better lives for current and future generations here in Kentucky and across the ARC region,” said Beshear. “Access to quality health care, a good paying job and clean water should not be determined by your zip code.

"I want to thank my fellow ARC governors for entrusting me with this role and look forward to continuing our important work together.” 

In FY 2022, ARC invested nearly $240 million throughout the region, which attracted an additional $1.57 billion in private investments.

The projects funded in FY 2022 will create or retain nearly 22,600 jobs, and provide training to over 41,500 students, workers, and leaders for new opportunities in emerging sectors across the Appalachian region. 

ARC also launched two new funding opportunities in FY 2022 — the Appalachian Regional Initiative for Stronger Economies (ARISE), a $73.5 million funding opportunity to drive economic growth through large-scale, multi-state collaborations; and READY Appalachia, a community capacity-building initiative offering flexible funding to Appalachian nonprofits, community foundations, local governments, and Local Development Districts. 

Learn more about ARC's investments in the region in FY 2022.  

ARC is led by a commission composed of the governors from each of the region’s 13 states, and a federal co-chair who is appointed by the President and confirmed by the Senate.

Each year, the governors select a states’ co-chair to lead the commission in partnership with the federal co-chair.

Gayle Conelly Manchin was sworn in as the Appalachian Regional Commission’s 13th federal co-chair on May 6, 2021, becoming the first ARC federal co-chair from West Virginia.

More U.S. Startups Formed by Women

Data on female entrepreneurship rates over the last decade shows an overall increase in self-employed women. 

According to a survey by Gusto, around half of the start-ups in the U.S. during 2021 were formed by women, an increase from 28 percent reported in 2019. 

New research, undertaken by Lensa, reveals that in the past 10 years, over 203k new women are working self-employed and make up 41.64 percent of the total self-employed workforce in 2020.

While the number of self-employed workers has decreased by 92k overall and there are 295k fewer self-employed men in the last decade. 

The average number of self-employed women over the last 10 years is 3,469,500 which is 39.90 percent of the average amount of self-employed workers in the U.S. and five percent of the female workers.

In 2020 there has been an increase of 1.50 percent in new self-employed women allowing them to make up 41.64 percent of the self-employed workforce in the U.S.

In 2020, the Bureau of Labor Statistics data shows that in 2020, there were 3.54 million self-employed women, making up 41.6 percent of the self-employed workforce in the United States, a three percent increase from 2016.

And for men, they had a three percent decrease, making up 58.4 percent of the U.S. total self-employed workforce. 

Read the full research here:

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