How to categorized federal tax withholding from bank checking account interest

Thuc

Hello Everyone!

I would like to know how I can categorized federal tax withholding from my bank checking account interest income. The reason is after doing reconciliation of my bank checking account, I noticed that it is unbalanced by $0.40.

The reason is I haven't appropriately accounted for the federal tax withholding. Instead, I entered the gross interest income under 'bank interest income'. Do I create a category called ' federal tax liability' under short term liability and place the withholding amount under that category?

Here is the screenshot the transaction in question:

Thank you in advance for your help!

Kind Regards,
Thuc