[7] A taxpayer does not have to pay estimated taxes if

A. The taxpayer's tax liability for the previous year was less than $1,000.

B. The taxpayer's withholding covers 90% of the tax liability for the previous year.

C. The taxpayer's Earned Income Credit will exceed his or her tax liability for the current year. D. All of the answers are correct.

[8] Ms. W, who is single, determined that her total tax liability for Year 2 would be $10,000. W is required to make estimated tax payments if

A. Her Year 1 tax liability was $12,000 and her Year 2 income tax withholding will be $9,750. B. Her Year 1 tax liability was $12,000 and her Year 2 income tax withholding will be $9,000. C. Her Year 1 tax liability was $5,000 and her Year 2 income tax withholding will be $6,000. D. Her Year 1 tax liability was $9,000 and her Year 2 income tax withholding will be $8,500.