Yes, these types of royalties should be reported on Schedule C, which are typically reported on Form 1099-MISC Box 2.
The 1099-MISC entry page in the Business Income section displays Box 2 Royalties (see screenshot #1 below - click to enlarge). You may also enter this as General Income, which appears on the Business Income summary page under income from 1099-MISC (screenshot #2). Either is acceptable, as long as you report all your business income.
The easiest way to
find Schedule C in TurboTax is to open
your return and use Find/Search in the TurboTax header. Enter "schedule c", hit Enter,
then click on "jump to schedule c".
This will take you directly to the start of this section where you can set up
your business and enter your income & expenses.
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