You are correct. Hobby activity or activity not for profit limits deductions for expenses against the income.
IRS Publication 525 Taxable and Nontaxable Income, page 32 states:
Activity not for profit
You must include on your return income from an activity, even if you don't expect to make a profit from that activity. An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Enter this income on Schedule 1 (Form 1040), line 8j. Deductions for expenses related to the activity are limited. They can't total more than the income you report from the activity and can be taken only if you itemize deductions on Schedule A (Form 1040).
This TurboTax Help explains that beginning in 2018, the IRS doesn't allow you to deduct hobby expenses from hobby income. You must claim all hobby income and are not permitted to reduce that income by any expenses.
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