@tryoder
Do you have a Schedule C or schedule SE? That would make the income "earned" and it would mean you entered it incorrectly in the program. Otherwise, I don't immediately understand why hobby income would be "earned." I suspect you made a mistake entering the 1099, so that Turbotax assigned it as self-employment income even though you did not intend that.
Because hobby income is "unearned" income, your child will be subject to the "kiddie tax" unfortunately.
