Using the online editions you have to upgrade to either the Premier or Home and Business edition to enter a Schedule K-1
1.Click on Federal Taxes
2. Click on Wages and Income
3. Click on I'll choose what I work on
4. Scroll down to Business Items
5. On Schedule K-1, Q, click the start or update button
K-1 Forms for trust and estate beneficiaries
Trusts and estates use Form 1041 to file their tax returns. In some cases, the trust pays the income tax on their earnings rather than passing it through to the beneficiaries. However, some trusts and estates pass income through to the beneficiaries. In this case the beneficiaries receive a K-1 that shows the income that they need to report on their own tax returns. Whenever a beneficiary receives a distribution of income, the trust or estate reports a deduction for the same amount on its 1041. This keeps the trust or estate from being taxed on this income so that the income is only taxed once.
Or, see this TurboTax support FAQ on entering a Schedule K-1 - http://intuit.me/2s6ngDG
For Additional Information- What is a Schedule K-1 Form 1041: Estates and Trusts? : http://intuit.me/2scm1D6
