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Ok, ok - Joanna here (Judith's daughter),
I appreciate all of your answers.
I read all of this and it all makes sense to me. No W-2 - self employed, (SEP IRA an option?), child labor laws-the can of worms, report-better return/don't report. I don't want to do anything against the law and I want to be honest.

Many of my babysitting jobs are every now and then (I have about 6 customers and growing). But one is 5 days a week (two working parents). My mom says that there is a place on the tax forms that a person can deduct child care expenses, which is what I do for them. So aren't they going to turn my name into the IRS anyway?

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