what dictates the diference between a daycare and baby sitting and how $ can you earn before you have too file

Answer 1

Baby sitting is what teenagers do so parents can get a night out or a weekend off - going to the child's house to be or stay with the child. When you start taking the same kids into your home day after day it then becomes daycare. Some parents will say they are not going to claim the deduction on their tax return - some home daycare providers will then give a cost break because they themselves do not plan to report it. At the end of the year the parents will probably take a second look at how that tax deduction will effect them and change their minds. If you are caring for kids on a regular basis as a business - treat it as such. The parents will need your tax ID number so they can claim daycare payments made to you as a deduction for them. - This is USA rules at least.

Answer 2

Daycare probably requires certain licenses.

Technically, you are supposed to file all the income you make (US tax law) no matter what it's from (even if it's just from raking your neighbor's leaves).

However, many people don't file a tax return unless the income is somehow tracked (through checks or deposits in your bank account). If a business pays you $600 or more, they are required to report the payments they made to you to the government.