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April 10, 2024
Question

For purposes of figuring underpayment penalty, you may elect to treat the tax withheld as paid when it was actually withheld. Do I say yes or no

  • April 10, 2024
  • 1 reply
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This is a question from Turbo tax after it told me that I have an underpayment penalty.

1 reply

April 10, 2024

You probably want to say no.  Saying yes means you are going to enter all of your tax withholding by entering the amount and date withheld.  If you say no, the program assumes it was withheld equally throughout the year.  In other words 25% in first quarter, 25% in second quarter, etc.  

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