As @SweetieJean says, you are required to report all business expenses.
The IRS does not automatically apply the Hobby label to a Schedule C activity when it shows 3 consecutive years of losses. COVID-19 certainly is going to have an impact on conventional rules of order.
What the IRS does looks at more closely and consistently is tax returns that may qualify a taxpayer for the Earned income Tax Credit that also have a Schedule C with variable income.
Leaving off expenses can increase the amount of earned income and increase the amount of earned income on a return and can increase the amount of Earned Income Tax Credit.
The expenses are not questionable if they are ordinary and necessary for your business to operate and try to make a profit.
