K-1 form (1041) and a California state K-1 form (541), but Turbo Tax is only guiding me to complete info from the federal 1041. What happens with the state form 541?

[K-1-Question]

I received both a federal K-1 form (1041) and a California state K-1 form (541), but Turbo Tax is only guiding me to complete using information from the federal 1041.  What happens with the state form 541?

[Anonymous_ · Accepted solution]

" What happens with the state form 541?"

That form has nothing to do with your federal income tax return. 

You will have to enter the information that appears on the form into your state income tax return.

[IreneS]

There is no corresponding entry screen for a CA 541 from an estate/trust as there is for a K-1 from S-Corps or Partnership.  Compare the CA K-1 to the federal version.  If there are any differences you can enter them in your CA return using these steps:  

1. Go back into your CA return and proceed to the screen, Here's the income that California handles differently.  [NOTE:  If you have finished going through the CA interview, when you go back in to the return, you will see the screen, Your 2019 taxes are ready for us to check.  Click the Edit box next to Income and adjustments to get to the screen, Here's the income that California handles differently.]
2. In the Business section, click the Revisit box next to Partnership K-1, S-Corporation K-1, or Estate or Trust K-1.  On the applicable Schedule K-1 Summary, click Edit next to the name of the entity. 
3. Enter the adjustments on the next several screens.  You will be brought back to the Schedule K-1 Summary screen, where you can enter adjustments for other K-1s or click Done.

[Edited | 3/9/2020 2:00pm PDT]

[RobertLauriston]

If you have California withholding reported on form 541, you need to attach it to your California return.

TurboTax did not tell me to do that so six weeks after filing I got a letter from the FTB saying that I needed to pay instead of getting a refund. (I got the 541 from the CPA who prepared the final return for the estate / trust.)

[One4uTwo4me]

How do I enter a California K-1 (541) in my personal trust tax return 1041 using Turbo Tax Business 2020?  I entered the Federal K-1 (1041) amounts just fine when using the step-by-step data entry option under the FEDERAL TAXES tab, but there is no data entry in step-by-step option nor the forms option to enter the K-1 (541) in the STATE TAXES tab. I need to tell Turbo Tax Business that there are California Adjustments in Column (C) of the K-1 (541) that need to be entered? Thank you.