Do I have to pay taxes on income from a business that I didn't materially participate in?

Hi,

I received a 1099-K from PayPal for a business that I didn't materially participate in. When I enter the information in TurboTax (including checking that I didn't materially participate in the business), Turbo Tax shows me as owing money on that income.

Is that correct? Seems like if I didn't materially participate in the business, I shouldn't owe any taxes on the income. Maybe I'm doing something wrong, not sure.

Thanks!