Legal Question in Business Law in Maryland

Watching children in this state involves several "legal" areas. Reporting income is one and it sounds as though you understand and follow those regulations. (Note that oftentimes gifted money from a parent to a child does not incur income taxes but you may wish to consult with your accountant or tax advisor regarding any sums you receive from your own parents). Another area of regulation involves child care licensure.

Watching members of your own family in your own home usually does not require any licensure, nor does occasional babysitting in other people's homes. Watching other people's children outside of their homes may require licensure if it is more than occasional, limited babysitting. Maryland has an office of child care that can answer specific questions about licensure; according to that dept the cut-off is 20 hrs / month.

Please note that the above post provides general legal information and is not intended as any type of legal advice or specific legal analysis of your situation. You are encouraged to seek legal assistance as appropriate.