The money you received should not be subject to self-employment tax, as that is for money earned the is related to business activities. The default treatment by the IRS is to treat income reported on a form 1099-NEC as business income, however.
The questions in TurboTax are designed to prevent the income from appearing as business income on your tax return in cases like yours. Since I don't know how you answered them, I can't comment on what answers you gave that may have triggered the income as appearing to be business income. You can look on your form 1040, on schedule 1 to see if the income is reported on line 8. If so, the IRS should not have treated it as business income.
To remedy the situation, you should respond to the IRS notice in writing and explain where the income was from and what it was used for and they should abate the tax and related penalties.
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