Yes, that is correct. But do realize, depending on how much you are making, the chances of being flagged will be increased. If you have a 1099-NEC from Amazon Vine and only had $1,000 of income, it would make sense that it was reported on Schedule 1 as hobby income instead of Schedule C. If you have income of $40,000, it would be hard to sell the idea that this was hobby income and you were not doing with with the intention of making money.
If this is truly hobby income, then it should be reported on Schedule 1. It is is income from self-employment, then it should be reported on Schedule C. If you report it correctly, even if it raises a flag, there won't be anything to worry about because it is correct.
"Again, long story short- I know the differences between hobby and SE, and I know how and why my accountant would do his approach. But I also think it's different when filing on online software and want to be smart here."
All returns go through the same check as even the majority of returns filed with private practice CPAs are filed electronically. Just like TurboTax, the CPA can only include the information you give them on your return. If you leave out a 1099 or a W2, the CPA has no way of knowing that, so to the IRS, having your return filed one way does not cause a bigger flag than it does the other way.
Again, if your brother meets the criteria @AliciaP1 posted above for a hobby, then you should report it as a hobby on Schedule 1. If he does not, the report it on Schedule C as business income.
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