Turbo Tax doesn't give any reasonable options here. We received a 1099-NEC from Colorado. This was some sort of credit for educators due to COVID stuff I think. Unsure of how to file through TurboTax.
Even though the income is related to your wife's main job, it is not subject to self-employment tax. To enter a Form 1099-NEC that is not for self-employment:
Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.
Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec.
These entries will report the income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.