My son generates 90% of his income from his main business each year. The other 10% comes from finding odd jobs he picks up to make a little extra money.
In 2018, he began delivery driving for Favor. Favor drivers are contract employees and don't receive a 1099-K unless they deliver 200+ Favors AND generate $20K+ in gross Favors per year. He only made $1,000, so he didn't receive a 1099-K.
My question is, is he REQUIRED to file a Schedule C for this income? Is there a reason he couldn't just forego deducting expenses and just add this small amount of income on his 1040 as Hobby or Other Income? Since it's not being reported to the IRS, I wouldn't think it matters as long as I include it somewhere. I'm sure that's not the case, but creating an entire business return for such a small seems counterproductive.
One reason I don't want to deal with the expenses is because he used the same car and phone for both his main business and for Favor driving. I don't know if that would raise any red flags or somehow be an issue, but I would think the less complicated it is the better.
I know it's not overly difficult to do, but the benefit from these expenses isn't going to be much and it's just not worth the time it'll take to figure out.
Any thoughts or suggestions to minimize issues?
Thanks!
