In the income section, there is a place for W-2 income and a separate place for 1099-MISC income. Your wages on W-2 are employee income, but your 1099 will be either 'Other Income' or 'Self-Employment'. Although you can report both in TurboTax, you cannot use the Free Edition to file 1099-MISC.
You will need to upgrade to Deluxe or Premier to enter the 1099-MISC income.
You may want to look into the TurboTax Freedom Edition; it is free software that does handle the 1099-MISC.
Do I Qualify for TurboTax Freedom Edition
How To Switch To Freedom
