It depends. You can actually have an underpayment penalty even if you paid estimated tax payments. Check out the information below and see if you might possibly have a penalty.
The IRS tax system is pay as you go, so when you received income they want estimated tax to cover.
There is an annualized method available if you received more income in the last quarter of the year which could lower the penalty.
Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:
You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.
Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.