Alex, an avid woodworker, started creating custom furniture pieces and selling them to his friends and family. Although he pursues this activity as a hobby without profit intentions, he still needs to report his income and expenses. How will you report Alex's income from this activity? The income and expenses are not reportable since the activity is not considered a for-profit business. The income in excess of all expenses is reported on Schedule 1 (Form 1040), line 8z. The income in excess of the cost of goods sold is reported on Schedule 1 (Form 1040), line 8j. The income is reported as gross income in Part I of Schedule C (Form 1040) and the expenses in Part II.