You will see the option to prepare 1099 forms when you edit your business entries under Business Expenses, then choose Other Common Business Expenses. On the next screen choose Contract Labor and you will see the option Create and file W-2s and 1099's online with TurboTax Quick Employer Forms:
If you are using TurboTax Business, you will see an option to prepare 1099 or W-2 forms when you enter a new business into the program.