Well, the benefits are that claiming your income is legal and not claiming it is illegal. Also, claiming it means you can write off your: mortgage interest, part of your vehicle costs, groceries, craft supplies, a portion of each bill (hydro, gas, water, internet, cable TV, ect), any costs to advertising, ect. There are lots and lots of writeoffs. Yes, you might still have to pay taxes, but it will be worth it...especially considering that most parents want to be able to write off their childcare costs. Filling childcare spots is much, much easier if you provide receipts.

As someone who utilized home daycare in the past, I never would have gone with a provider who wouldn't give me receipts to write off my childcare expenses. It's a HUGE benefit to the parents and makes a big difference on taxes. I don't know many parents who would agree to pay daycare under the table unless they, themselves, were paid under the table. Most need to be able to claim it.