Im going to start babysitting from my home, I will be watching 3 children. If Im giving receipts and claiming the income on my taxes would I have to be licenses or open a business??

Hi, Poptart19!

Around where I live, you wouldn't need to be licensed for watching that small number of children. Having a license or not shouldn't affect your income reporting status for tax purposes. However, I would make sure that you have the proper insurance for watching the children and there is the possibility that you might need to have proper zoning of your home in order to be operating a business out of it.

My suggestion would be to speak with city officials about this concerning the requirements.

Thanks!