Ask an AI Accountant

Absolutely, influencers do have to pay taxes on products they receive as payment for their services. The IRS considers these products as income, and they should be reported on your tax return. The value of the products is typically based on their fair market value, which is essentially what you would pay for the product in a store.

As for tax forms, it depends on the company you're working with. Some companies may send you a 1099 form if the value of the products you received is over $600. This form reports the value of what you received as nonemployee compensation. However, even if you don't receive a 1099, you're still required to report the income on your tax return.

Remember, it's always a good idea to keep detailed records of the products you receive and their value, just in case you need it for your tax return or if the IRS has any questions.