What filing status should Dick use for 2021 considering he is supporting two dependent children?

The appropriate filing status for Dick in 2021, given that he is supporting two dependent children, is Head of Household. To qualify for Head of Household status, a taxpayer must be unmarried at the end of the year and have paid more than half of the household expenses. Additionally, the taxpayer must have a qualifying person living with them for more than half the year, which in this case are the two dependent children.

Filing as Head of Household generally provides a higher standard deduction and more favorable tax rates compared to Single status, making it financially beneficial for taxpayers in similar situations. This status also reflects the responsibility of supporting dependents, thereby aligning with the supportive role Dick has for his children.

Other statuses, such as Married Filing Separately or Married Filing Jointly, apply primarily to individuals who are either legally married or choose to file separately when they are married. Single would be an option, but it does not take into account the dependent children and the support Dick provides. Qualifying Surviving Spouse is a designation for someone who has recently lost a spouse and has dependent children, but this does not apply unless Dick has experienced such a loss. Therefore, considering his situation, Head of Household is the most suitable choice.