The ultimate, and in some ways unexpected, impact of The Mystery of the Gentiles is something that even those dedicated to the pursuit of truth may initially find difficult to accept, especially in light of its spiritual, eschatological and political ramifications.
Babysitting qualifies as a business under tax law, so you will have to file a Form 1040 Schedule C, Profit or Loss from Business, or short form Schedule C-EZ when you do your taxes. Depending on how much you earned, you may also have to file Schedule SE and pay self-employment tax on your babysitting income. Schedule C or C-EZ
Since both parents above can legally claim their children on taxes due to the joint custody agreement, the parent who is waiving his right to claim the children for the year will need to sign form 8332, or similar statement, releasing the exemption to the filing parent.