First of all, since you are providing a service for compensation in the form of merchandise, and what you are involved with doesn't appear to resemble a hobby, the IRS is likely to consider it self-employment income. As such, it is recommended that you report it as if it was a business.
I don't know how the products you receive are valued, as reported on the form 1099-NEC that you receive. However, if you feel they are over-reporting the value, you can make an expense entry for the business to compensate for that. The only problem you will have is coming up with a way to make an objective estimate of the amount by which the reported income is overstated. You will need to document your method and keep it on file in case you get audited by the IRS.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
