Which statement is true regarding Jane's need to pay estimated taxes?

The correct response indicates that Jane does not need to pay estimated taxes. This situation can occur if Jane’s tax situation meets certain criteria established by the IRS. Primarily, individuals are required to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed and if their withholding does not cover at least 90% of the tax liability for the current year or 100% of the tax shown on the prior year’s return, provided that the prior year was a full 12-month period.

If Jane's tax withholding is sufficient to cover her tax liability for the year, or if her income is below a certain threshold, she might not be required to make these estimated payments. This aligns with the typical scenario where taxpayers rely solely on withholding through their employers to meet their tax obligations.

In contrast, the other choices might not reflect the requirements that apply to Jane’s specific tax situation. For instance, the idea that she will only pay taxes according to withholding only applies if her withholding accurately represents her tax liability. The statement suggesting she must pay estimated taxes regardless of her withholding does not take into account situations where withholding is sufficient. Lastly, ignoring her AGI could lead to misestimating her tax liability,