Most people answer No to this question.

However, if more of your withholding occurred earlier in the year, then answering Yes may reduce or even eliminate your penalty.

If you answer Yes, you'll have to use the regular method of calculating your penalty and file Form 2210 with your tax return. (The IRS won't calculate your penalty for you.)

Caution: If you made more than 8 estimated tax payments for 2007, including your payments of withheld taxes, you need to OVERRIDE line 19 on Form 2210. If you then are showing any underpayments on line 25, you'll have to work out the regular method manually and OVERRIDE lines 27 - 31. The regular method is difficult to calculate, particularly if you made many tax payments. We recommend that you consult a tax advisor. To find an H&R Block tax professional, click Ask a Tax Advisor on the left.