This year most of the shops I have completed were reimbursement shops (restaurants etc). I did not make much (total is under $4). I worry if my ratio of income ($ paid for performing shops and $ for food reimbursement) vs expenses ($ spent on food and mileage) is appropriate. Right now they are almost equal... after deducting business expenses from business income I get only $200 of the taxable income. I technically could even claim office expenses since I have a separate room with desk where I only do the reports, but I am afraid to raise a red flag for IRS.
Is it appropriate to have your expenses matching your income, so that it looks like you made only so little without raising a possibility of the audit? I utilize all the available deductions according to the law and I really like my food shops. After all, they are business expense. I would appreciate your advice in this manner.