Definition
Goods or services you receive in exchange for your own goods or services are taxable income at their fair market value, like free products for a sponsored post.
What it means
Bartering is trading goods or services without using money. The IRS treats the fair market value of what you receive in a barter as income, reported the same way as cash for that kind of work. For creators, a product or trip a brand gives you in exchange for a post or video is income at its fair market value, even if no money changes hands. A barter exchange that runs a trading network must report transactions on Form 1099-B. If you are self-employed, bartering income goes on Schedule C and is subject to self-employment tax, and related business costs may be deductible. Keep a record of the value of what you received and what you gave.
Example
A beauty creator who receives a $400 hair dryer in exchange for a review video has $400 of income from that deal.
Illustrative numbers only. Your situation will differ.