All of this income should be reported on Schedule C of form 1040 along with all of your business expenses which basically include anything you spent to get that income. With a little imagination, you can easily make the expenses nearly equal to the income so that almost no tax is due and you're still within the law.

If you are caught with undeclared income, no excuse will do. On the other hand, if you're caught with deductions you're not entitled to, almost any excuse will do.

Bev and Jerry