Report on C as income. The go to other income and enter the same amount as a negative number. This will zero out that income but will preserve that amount as earned income for earned income credit if otherwise qualified.
Federal Taxes -> Wages & Income -> I'll choose what I work on -> scroll to the bottom and under Less Common Income select Start (or Update) for Miscellaneous Income.... You'll find all sorts of other income categories in there. If none of those shown fit the bill then pick Other reportable income and you can enter your own description(s) and amount(s).
"Other expense" notated “Notice 2014-7”.
