Why do i need to claim my youtube as a business if i only post youtube shorts as a hobby. I spent less than 40 min to create a 15 seconds vid. Can i use schedule e.

You earned money from your YouTube activity.  However you can report this as hobby income by following the steps below.  As a hobby, you are not allowed any deductions from this income due to the current tax law under the Tax Cuts and Jobs Act (TCJA) for the years 2018-2025.

If you choose to enter as hobby income, do not enter the Form 1099-MISC, instead you can use the steps below for hobby income.  Be sure to delete any entry for the 1099-MISC if applicable.

To enter hobby income and expenses in TurboTax please follow these steps:

• Once in your tax return, click on Federal Taxes tab
• Choose Wages and Income
• Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
• Click Start to right of Hobby income and expenses

Ok thanks but if i ever get audit, is it ok to use another 1099 even though i got a 1099-misc and all the income is on block 2 royalties. Its just youtube is not my source of income at all and we started gettin royalties from 15 seconds shorts (which is cracy). Thanks hope you could explain why its ok to use a different form to add those royalties earnings. Thank you

Yes, since you consider this a hobby.  There is no concern that an audit would occur for this income.  

The instructions above will report it in the appropriate location on the tax return.  I do advise you to keep your 1099-MISC forms with your tax return file should you need them later.