You have a small business and it's a child care business. Depending on the state that you are in licensing requirements can be a lot. You need to find out what the license requirements are for your state.
You are going to need to issue statements to the parents of all of the kids that you watch in order for them to take a deduction for child care for paying you. That's what the EIN is for. They need that number for the deduction. The statement needs the name of your business, the address, the EIN and the total amount paid for each child for the year. Your social security number will work for this but like you said that can lead to problems.
To enter this on your taxes you'll scroll down in the 'Wages and Income' section until you get to 'Business Items'. Click on 'start' next to 'Business Income and Expenses' (the first one). The system will ask you questions about your business and you will answer each one carefully.
@Jane4619
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