There is no minimum amount of profit, as it is possible to report a net loss from a self-employment activity. The $400 to which you are referring only concerns the self-employment tax threshold. It doesn’t affect the nature of the business activity itself.
For tax year 2019 and later, the IRS has phased out the Schedule C-EZ. Only the Schedule C remains.
According to IRS.gov, you should use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if:
- Your primary purpose for engaging in the activity is for income or profit.
- You are involved in the activity with continuity and regularity.
Even if your income from this particular payor was low, it is possible that your involvement was continuous and regular—especially if this income was received close to the end of the tax year and you continue to perform this activity into the current year. The payor doesn’t need to be the same—the continuous and regular nature of this activity can still be met if you perform the activity for other payors going forward.
Without knowing all the specifics, I can only recommended that you report this activity on Schedule C. The upside to this is that you can deduct all ordinary and necessary business expenses and end up with a net loss. This net loss can then offset other income you may have for the tax year—thus lowering your tax burden.
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