What filing status should Wendy and Betty claim

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Question - Wendy, age 34, divorced her husband in February 2020. Shortly thereafter, she and her 3-year-old daughter moved into the home of her 67-year-old, widowed mother, Betty, where they lived for the remainder of the year. Wendy's dad (and Betty's husband) passed away 7 years ago, when Betty was 60 years old. Wendy earned $60,000 in compensation during the year, and she paid all the cost of her daughter's clothing, toys, and medical care. She also contributed 30 percent toward the cost of maintaining the home. Betty provided 70 percent of the cost of maintaining the home. Betty also received taxable retirement benefits of $55,000. What filing status should Wendy and Betty claim on their personal tax returns for 2020?

Wendy should file as head of household; Betty should file as a qualifying widow.

Wendy should file as single; Betty should file as single.

Wendy should file as single; Betty should file as head of household.

Wendy should file as single; Betty should file as a qualifying widow.

Wendy should file as head of household; Betty should file as single.

Reference no: EM132668780

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