You can handle this one of a couple of different ways.
- You can report it as rental income, and then enter an expense for the same amount. It will net to zero, and have no impact on your tax, but the 1099-MISC will be reported to the IRS.
- You can do nothing, and wait for the IRS to send you a letter. You can then respond to the letter and explain that it was below the threshold.
- You can not file it, and include a note of explanation with your return. You will have to print and mail your return.
