12 . After moving to his current residence , James established a neighborhood watch business for his neighborhood on August 1 2016 . His neighborhood association gave him a 1099 - MISC reporting nonemployee compensation of $5 956 for " watch " services provided during 2016 He incurred the following expenses for his business endeavor : $672 in printing fees , $1 108 in supplies used , and $581 in telephone expenses . He also drove 1 150 miles to carry out this activity patrol