HI! I ran across your question and answer googeling my own similar situation. But I have a twist. Im married we have 3 kids under 18, my wife made about what jenpen did in babysitting money (4000). And I understand how the "independant contractor" thing works to help get around paying the FICA rules stuff. I owe back taxes and I'm wondering given my situation what's my best way of maximizing my return. What Im thinking is filing "married filing separately" and putting the kids under her return and me filing married separately as well. THANKS!

Its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.

Redundant question; already answered.