I am a beneficiary of a Grantor/Parent trust that was finalized in 2020. The K-1 that I received in 2020 from my parents final trust had $427 in box 11C, which was the code for Short-Term Capital Loss Carryforward at that time. On my 1041 that I filed in 2020 using TurboTax, the $427 loss automatically flowed to Schedule D, Part I, Lines 5 & 7 and then to Schedule D, Part III Lines 17 & 19 in Column (2) and Column (3) and then to Schedule D, Part IV, Line 20. From there the $427 loss flowed to my 1041, Line 4 where the loss reduced my Total Income by $427. Everything seemed accurate at this point.
However, for subsequent years 2021 and 2022, this same $427 amount is being automatically entered by TT into the same Schedule D lines as listed above on my 1041 returns. This does not feel right because I am getting a $427 Capital loss benefit every year I file my taxes. In other words, I've now claimed a total of $1,281 in Capital Losses over the course of these 3 years.
Is this an error in the TurboTax Software? Or did I not make a proper entry somewhere on my 2020-1041 return? Should I just override TT by removing the $427 from Schedule D?
