Yes, your online Etsy business would be considered self-employed. As you imply above, even if you don't receive a 1099-K, you still will be required to report your income from your sales on Etsy.
If you have expenses and inventory costs associated with your business, then you will want to use TurboTax Self-Employed (online) or TurboTax Home & Business (CD or download) to create your tax return as long as you haven't set up a business entity (LLC or S Corp) for your business.
If your Etsy business has not been set up as a separate business entity (meaning you are a sole proprietor) then all of your business income and expense information will be included on Schedule C of your personal income tax return. More information on self-employment income and deductions can be found here: Reporting Self Employment Business Income and Deductions
Within TurboTax, you will have the opportunity to enter your business income, as well as your expenses for your Etsy business. TurboTax will guide you through questions related to your business, as well as help you enter your inventory and business expense information.
Here is a link for more information on TurboTax Self Employed: TurboTax Self Employed (Online)
And a link to TurboTax Home and Business: TurboTax Home & Business (CD or Download)
Here is an article which contains more information on your Etsy business and the possible effects on your taxes. Selling on Etsy and Your Taxes
