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The IRS does not give a specific guidelines how to treat such payments. You cannot claim it as charitable donation if you received any type of payment or reimbursement. And you cannot claim reimbursements without claiming an income. You can only deduct expenses against income claimed on your tax return.
How is the income reported? Box 3 or box 7?
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You CANNOT claim it as charitable donation because you got paid for it. Charitable donation is if you give or do something and expect nothing in return, that's not your case.
If the amount was reported in box 7 - nonemployee compensation, you can claim it on Schedule C - profit and loss from business. This way you can deduct your expenses. But you will have to somehow document it with receipts. You will have to allocate the cost of food consumed by the student (hopefully you have the receipts), mileage for transportation unless the student used his/her designated car, utility based on the percentage of space used by the student, same as mortgage interest and property taxes. Unfortunately there's no easy way and you cannot use an average or per diem rates.
No. The profit (the difference between what you received and your expenses) will be subject to self-employment tax (15.3%) in addition to regular income tax.