No, this is not correct. Royalties are not subject to self-employment tax.
Royalties are reported on Schedule E as passive income. You don't owe self-employment tax on royalties. If you don't otherwise have self-employment income, you can report royalty income in the Premier version of TurboTax Online.
To enter royalty income, you can type "1099-misc" in the Search box, then select Jump to 1099-MISC. You will be able to enter your royalties there.
