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For purposes of figuring the underpayment penalty, I may elect to treat the tax withheld as paid when it was actually withheld. Do I want to do this?

My Federal Tax Return increases when I click "yes." I'm not quite sure what the difference is between tax withheld and tax paid in this scenario?
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2 Replies

For purposes of figuring the underpayment penalty, I may elect to treat the tax withheld as paid when it was actually withheld. Do I want to do this?

Take the option that results in less tax.

For purposes of figuring the underpayment penalty, I may elect to treat the tax withheld as paid when it was actually withheld. Do I want to do this?

If I choose the option that results in less tax, but I end up needing to pay that difference after July 15, 2020, won't I get charged interest for that difference?

 

Do you happen to know exactly what time and on what time zone the deadline is today?

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