What is the correct filing status for Ray considering he paid all the household expenses and has two children?

When determining the appropriate filing status for Ray, it’s essential to recognize the criteria for Head of Household status. To qualify as Head of Household, the taxpayer must be unmarried, pay more than half the cost of keeping up a home for the year, and have a qualifying person living with them for more than half the year.

Given that Ray has paid all the household expenses and has two children, he meets the requirements to file as Head of Household. His children qualify as dependents, which satisfies the dependency requirement for this filing status.

In contrast, if Brenda were also to file, she would not necessarily qualify unless she had a different living arrangement or met specific additional criteria. The correct interpretation is that Ray can file as Head of Household due to his financial responsibility and role in raising their children, while Brenda must file as Single, provided she does not meet the qualifications for Head of Household herself. This situation underscores the importance of understanding personal circumstances and the specific requirements tied to each filing status.