Yes to all of the above. More specifically, you report your gross & expenses on Schedule-C. Your gross income is everything you get from this "product research and feedback" company. Your expenses are monies you spend in acquiring the products for review and any other expenses associated with this income. Note that the net income above $400 is also subject to 15.3% SECA ( Self-Employment Tax, equivalent to the FICA that wages earners pay ). And yes you have to report all of this on your Federal and State taxes.
Good Luck
