Dear isazisa,
Thank you for your patience! The local advice you received is correct for hobby expenses. Under the new tax reform, you are required to report hobby income on Schedule I, Line 8 and expenses related to that income are no longer allowed, not even home office. You'd be paying ordinary tax rate depending on your income tax bracket income tax bracket.
However, if you are in it for profit, you may consider yourself a sole proprietor (business). In that case, you can report income and expenses on Schedule C, you'll be subject to self-employment taxes on the net profit, if any. You don't have to register the business as a limited liability company to file a Schedule C, but if you like to limit your liability (in case someone sues you) then you should consider it to protect your personal assets.
Regarding the items you receive in exchange for surveys, those are considered barter income and it is taxable income at fair market value, here's a resource for you bartering income.
Overall, you have to ask yourself when you sell these items or any other items, am I doing this as a hobby or as a business. Here's an IRS resource that will help you hobby vs business.
Please let us know if you need anything else.
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