Okay I think I finally solved this myself. Using this forum as a way to vent out my frustration allowed my mind to flush. Indeed quarterly paid taxes are not deductions and do not go into the 1065! I made the right decision. So much for Turbotax "tax professionals". They should have known the answer.
Here is the answer:
In Turbotax Home & Business, go to
Personal->Deductions & Credits.
From there it will take you to a form with fields to enter your quarterly payments for each quarter.
We are now looking at a huge tax refund after we entered all the information.
