Brand deal and sponsorship income is ordinary self-employment income, reported on Schedule C (Form 1040). Whether the brand pays in cash, gifted products, or a mix, the tax treatment is the same.
Cash payments:
- 1099-NEC issued by the brand if they pay you $600+ in a calendar year
- No 1099 = still taxable; keep your own invoice and payment records
- Report on Schedule C Line 1; SE tax (15.3%) applies to net profit
Gifted products and PR:
- Per IRS, items received in exchange for content/promotion are taxable at fair market value
- Low-value PR packages (under $100) are commonly not reported (de minimis approach, technically non-compliant)
- High-value items ($3,000 laptop for sponsored review) are unambiguously taxable
W-9 form:
- Brands need your SSN or EIN to file accurate 1099s
- Use an EIN (free from IRS.gov) to avoid sharing your SSN with multiple brands
- Complete promptly — some brands hold payment until W-9 is received
Deductible expenses against brand deal income:
- Agent/manager commission (10-20%): Schedule C Line 10
- Equipment to create sponsored content: business-use % of camera, lighting, etc.
- Editing software, travel to brand activations, freelance crew
- Processing fees (PayPal 3%): Line 27a
QBI deduction: The 20% Qualified Business Income deduction (permanent under OBBBA 2026) reduces taxable income on net Schedule C profit. At $50,000 net brand income after expenses, the QBI deduction saves approximately $2,300+ in taxes.
See https://www.expensebot.ai/blog/brand-deal-income-taxes for full guide with tables.