Free Step Dodge

Lol, you actually throw punish online

Yep. It is possible. You know there are two types of lag: Input delay and lag spiking (where the gameplay is all jumpy). In the former t-punishing can be done provided that you either buffer the throw or mash the throw button. I have to admit that in the latter situation it is nearly impossible to t-punish xD.

I only do 1 on1 matches online simply to reduce the possibility of lag...... occasionally that plan fails.

Do you mean 1 on 1 as in two player lobbies, or 'solo battles' compared to 'tag battles'?