Q. TurboTax (TT) says I owe money, is this correct?
A. Yes, you owe income tax on that money, if your total income is high enough to be taxable.
What you don't owe is self employment tax (SET). SET is how the self employed pay their social security and Medicare tax. TT assumes any money reported on a form 1099-NEC is self employment until you tell it otherwise (the blood bank shoulda used form 1099-Misc, not 1099-NEC).
After entering your 1099-NEC, you will encounter a screen titled "Does one of these uncommon situations apply". Check the box "This is not money earned as an employee or self employed individual; it is from sporadic activity or hobby".
Checking that box will put the income on line 8 of Schedule 1 as "other income" and not subject you to SET.
