I gifted Bitcoin to my 2 kids using the automatic process through Turbotax to Coinbase the gifts are as taxable sales instead of non taxable gifts. How do I fix this?

Income that you gift to someone is not non-taxable to you but non-taxable to the receiver.  The reason it's non-taxable to the receiver is because the giver already paid any tax due on that income.   The gain on the sale is taxable on your return.