Royalties are usually self employment, so that's the only option when you enter a 1099-Misc with $ in box 2.
To enter it as hobby income, you need to use a work around, in TT. See my last reply for one of those workarounds. The 2nd workaround is the enter the 1099-Misc with the $ in box 3. That will give you an interview to provide answers that will direct it to other income, instead of Schedule C.
But are your sure it's not self employment. What did you do to get this money. Receiving royalties for your previous work (e.g. author) is usually self employment.
