Self employed

The IRS and Amazon concluded after much discussion that for most people, Vine activities are self-employment income.  Amazon isn't fraudulently reporting anything - they are doing what the IRS explicitly told them to do (around 2015).  Logic doesn't always come into play with taxes, unfortunately. 

While a review isn't a requirement, it's an expectation.  So, in essence, there's an exchange of goods for services. (This is how the IRS views it.)

The products are given with the expectation of a review, or they stop sending them.    Also on the side of the argument making it "self-employment" income is  that it is generally recurring "revenue" (after all you can get between 3-8 items per day).  You also select the items that you want - they're not random like a sweepstakes prize.  

Promotional items, sweepstakes prizes, and the like are also taxable income, but they are generally "other" income as there is nothing expected in return for them.  Something's expected in return for the items you receive through the Vine program, though, even if it's not required.  

For someone who starts the Vine program and drops out a week later, "other" income or hobby income may be easier to rationalize- but it's difficult to argue there's a "hobby" here and that the income is incidental to that hobby.  The IRS defines hobbies as "an activity that a person pursues because they enjoy it with no intention of making a profit".  

I do like to shop - but it's going to be an uphill battle for me to convince the IRS that it's a "hobby" to "shop" on Vine.  The main reason to do it is for the free stuff!  That's "profit", if not in the sense of cash in your pocket.  Even though I enjoy writing the reviews, I'm not sending the items back after I review them.  Therefore, I've provided a service in exchange for something of value. 

The IRS has audited many Vine participants who have chosen to reclassify the income as hobby or other income, and the IRS determines that it is self-employment income in that process nearly every (if not every) time.   By then there are penalties and interest on top of the tax. 

The determination of hobby income is fact and circumstance based, so there may be some isolated cases of Viners who qualify to report their income as a hobby.  It won't be the norm, though.  

I am a financial professional,  a tax professional, and a Viner.  The income is self-employment income in the eyes of the IRS most of the time, whether we like it or not.    It's better to report it this way than to end up with penalties and interest on top of the tax due.