Taxes for receiving books to review

[fantasyreader9]

For fun, I sometimes review books online. Some of the books online that I review are ones that I was given for free before they are published, called advanced review copies (ARCs). ARCs are usually close to the final published draft of a book, but have occasional typos or formatting issues and are sometimes missing final cosmetic things, like maps. Most ARCs have a note saying that they are not for resale. Additionally, even less rare, I have been sent a free digital copy of a book already published to review.

What I want to know is, does this need to be reported as “other income” on Form 1040? I have seen online that people who receive products for free in exchange for a review must put the fair market value on their taxes. I have also seen on multiple sites that if the product is less than $100 then it does not need to be reported. If this is the case, then I know that I would not need to. However, I also do not know if ARCs even have any sort of fair market value. Would the FMV just be the cost of an ebook of the published version?

I tried calling the IRS but they were not able to answer questions about hobby income. I have tried looking on the IRS website but there is nothing that address my question that I have been able to find.

[KristinaK]

Yes, you would need to report the fair market value (FMV) of the products received as other income on your tax return (Line 8 of Schedule 1). 

And yes, the cost of the book when it's published is a reasonable approach to determine the FMV. 

[Opus 17]

Make sure you are aware of the difference between a hobby and a side business.  Depending on the amount of your activity and your intentions, you may be required to report your activities as a self-employment business on schedule C.

https://www.irs.gov/newsroom/hobby-or-business-heres-what-to-know-about-that-side-hustle

And yes, everything you receive in return for providing a review is taxable income, using the US dollar fair market value of the item.  If you believe that some items are worth less than their cover price due to their condition, you can use the lower value, but you should keep records of how you determined the value in case you are asked to prove it.