I made enough revenue on Twitch for them to send me my 1099-MISC, but this is a hobby, and should be filed as such.
I see no option to use my 1099-MISC if I select hobby income. Do I simply match the amount I put in the hobby section to the "Royalty" section on the 1099-MISC? Do I also have the ability to add expenses for this hobby?
I tried adding it in the Hobby income section, but that seems to create a Tax Liability, which I want nothing to do with...
Assistance is appreciated.
Please read this Community answer which addresses your question.
Just checking, because I added this source of income, I'll have a tax liability no matter what right? Want to make sure I get it 100% right here.
I won't be penalized for this in the future, correct?
That is correct.
As long as it is hobby income and not a self-employed business that you carry on to make money, you should be fine.
Your intent also drives whether or not this is a business or a hobby.
Please see the attached link for more information to help you determine whether your activity is a hobby or if it could be considered a business.