Questions pertaining to 1099 Misc

Background:

The child who is 19 and is filing independently for the very first time, did part-time work as a Tutor and the company that employs students, does not give W-2s, they just issue 1099s.

The Kid DOES NOT own a Business per se! They just did tutoring for a company that does issue W-2s and only issues 1099-MISC, I guess they must have figured out the students don't know much about taxes and employment and they prefer to not consider the "tutors" as employees.

Anyway,...

So, I entered the 1099-Misc info, and when I was doing the final check, TT flagged the return for the following issues:

1. Box 17 (state info) - the 1099-MISC has no information.
   So, I did some research, and from what I gather if there is no information, and you file your taxes it won't flag your return. Plus, the 1099-MISC has no information, so I don't want to introduce info that is different from what was submitted by the company to Fed and State. The kid (is actually 19 but still my kid) earned $745, so that portion was entered in.

Now that I have entered the 1099-MISC, it appears to have opened a whole new set of Can of Worms. I repeat the "kid does not have a business, but once 1099-Misc information was entered TT  or the IRS automatically considers you as I think "SELF-EMPLOYED BUSINESS".

So the other flagged items all are centered around the following and deal with Schedule C.

1. Schedule C Material Participation - Yes or No (only these two choices)
   Will try to not enter too many images as it messes up the posting of the question...but they are dealing with Schedule C. 
   
   
   
2. Enter Business Code (once again it is not a business; the kid just worked for a company that does not issue W-2s; only 1099-Misc), so not sure what to put and if I put something will it create issues in next year's taxes as the current year's file will be used as the base file.
3. Tutoring Address must be entered: Tutoring was performed from Dorm Room and Home room on the weekends.
4. City, State and Zip must be entered
   So, if I enter home or even dorm address, will it create any other issues (home and dorm are in California, CA, like would the FTB say you need a business license or some other stuff like that?)
5. Qualified Income: Yes or No
   
   
6. Required to File 1099 must be entered: Choices are Yes or No
   
   
7. Accounting Method: 
   Line F: Cash, Accrual, Other 
   *they received check
   
   

Thank you in advance for your assistance. Any explanation to accompany the above would be help as well.