Total number of allowances you are claiming? help? I have two kids and one on the way my fiancee doesn't work?

The bookkeeper or office manager at work will ask you to fill out a W-4 form which reflects how many dependents you have and your marital status. You are married and have three children. I suggest you file like that. You will not owe any taxes for 2012 and will receive a nice refund in 2013 that will come in handy. It's better to receive a nice refund the following year then to receive an extra $25 in the bi-weekly paycheck.

I have just started a pooper scoop business in NY state. It has exploded! Do I have to collectt tax for Taxes?

As a slogan you can use: Don't get into a loop, let me scoop your poop!
You need to register for a sales tax number with the state and collect sales tax. Services are taxable in NYS.  Here's the link: http://www.tax.ny.gov/pubs_and_bulls/tg_…

Im suposed to get a refund but i can`t prove my income?

Of course. The IRS has no reason not to believe you. Try to reconstruct the income you received. In a calendar agenda try to do it by date. Each time you believe you babysat, put down the approximate hours and the time, from when to when. At least you have something to show the IRS if you get audited. The refund is yours, don't lose it for lack of responsibility on the part of the people who hired you.