No need for Sch C. For the 1099-NEC, he did not intend to earn that money since it was a reimbursement. After the NEC entry, it will ask if this involved intent to earn money, select no and the sch C will not be required.
If he filed a sch C, he could write off expenses but would be hit with self employment tax for any remainder over $400. Since SE tax is 15.3%, he is probably better off just filing the income.
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