Doesn't matter about licensing. You provided child care services for which you were monetarily compensated. As far as the IRS is concerned, you are "self employed" for that activity. You'll need at least TurboTax Home & Business, and you'll report your child care income and expenses in the business section of that program. That will produce a SCH C which is filed as a part of your personal tax return.
You're also required to provide the parents with the total amount they paid you in 2014, and either your SSN or TIN so they can claim the childcare deductions on their tax return. By federal law, you are required to provide them this information. Now, many folks (myself included) have a problem with providing my SSN to others. So you can obtain and provide the parents a TIN (Tax Identification Number) which they can then use on their tax returns. To obtain an TIN for your childcare business, simply go to http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-... and start there. Do note that as it states on the website, it's down for planned maintenance through Jan 5, 2015. So you'll have to wait a day or two to actually apply for a TIN on line. Only takes a few minutes, and your TIN is issued within the hour after you complete the online application.
