I'm assuming that this llc is owned only by your wife, and is not a husband and wife partnership.
How do we report the Owner Distribution in TurboTax?
You don't report it. An owner's distribution is not an expense to the llc or income to the owner. Rather, the owner is taxed on the llc's income and expenses before any distribution of profits. In Quickbooks you designate the tax line item each expense category should be assigned to. There should be no expense category line item assigned for owner's draw because they are not deductible.
