Addressed to individuals providing unregulated child care in their homes, this booklet presents basic recordkeeping and tax rules. The booklet discusses the following topics: (1) child care regulations, focusing on the benefits of being regulated; (2) the business of child care, listing possible tax deductions; (3) the tax consequences of caring for children, presenting a worksheet detailing the tax liability of caring for children in one's home; (4) record keeping and tax tips, presenting seven rules for organizing records; (5) "unregulated, or illegal?" which notes that illegal providers are still required to report income on federal and state tax forms but cannot claim as many business deductions as caregivers who are licensed; (6) government benefit programs; (7) tax credits and child care subsidies; (8) agreements and insurance, including a sample child care agreement; (9) reducing the risks of caring for children; and (10) suggestions for additional help. (KB)