The IRS considers babysitting income to be self-employment, although your wife probably doesn't think of herself that way. Self-employment income is entered using Schedules C and SE (Form 1040).
To do that mechanically in TurboTax, you have a couple of options.
First, you can find the self-employment entry section by going through the regular taxpayer interview.
Second, you can navigate to the self-employment section by going through the TurboTax menu / tab tree as follows: Federal Taxes -> Wages & Income -> Business Items -> Business Income and Expenses (Sch C).
Third, you can follow the process to jump directly there, which is explained on the following TurboTax FAQ webpage:
https://ttlc.intuit.com/questions/2903027
If you have further
questions, encounter any difficulties, or just want to speak with a live tax
expert who can walk you through your TurboTax entries (including the ability to
screen-share with your computer), please feel free to contact us. We
would be happy to help you (and as a paying customer, the call is free to
you). Here is a link where you can create a support ticket and reach us:
https://support.turbotax.intuit.com/contact/
Thank you for asking about this.
