I have a K-1 for CA. The CA tax requires a Schedule E. Schedule E is looking for the "Net Federal profit or (Loss) allowed. Where is this generated?

That's transferred from your federal return. You have to have a corresponding Schedule E Worksheet in your federal return as well. You should enter the federal K-1 first and complete the federal return before doing any TT/State.

I am having this exact same issue. The final check analyzer gets hung up on Schedule E Worksheet, saying "Fed/Profit Loss Allowed must be entered" and the cursor takes me to the Federal/California Adjustment Smart Worksheet Box B. However, I already entered net federal profit/loss answering the federal questions. The cursor does not let me enter changes on the final worksheet.

Please advise.