To enter a grantor letter, you need to use the Premier version of the software. To do it, you will enter the information as though you received a K-1.
Box 1 on the K-1 (1041) is for interest income which will flow to Schedule B, as will Box 2a for dividends.
Boxes 3 and 4a on the K-1 (1041) are for short-term and long-term capital gain, respectively, which will ultimately wind up on Schedule D.
Here is how to enter a K-1:
ou need to use the Premier version of TurboTax to enter a Schedule K-1 in TurboTax.
Please make sure you use the right K-1 entry form. There are actually three types of K-1s, depending on the type of entity creating the K-1: partnership, S-corporation and trust/estate. Lines and codes on the forms differ from each other.
To enter information from a Schedule K-1, please follow these steps:
- Click on Federal Taxes > Wages & Income > I'll choose what I work on.
- In TurboTax CD/Download: Go to Business Investment and Estate/Trust Income, click on the Start/Update box next to Schedule K-1. In TurboTax Online: In the S-corps, Partnerships, and Trusts section click the Start/Update box next to Schedule K-1.
- Click Yes on the next screen, Schedules K-1 or Q.
- On the Tell Us About Your Schedules K-1 screen. Click the Start/Update box next to the type of entity that issued the K-1 (S-Corps, Partnerships, Trust/Estate).
- If you have already entered K-1 information, you will see a Summary screen. Click Add Another K-1 to enter your information (or click on Edit to continue with the existing form entry).
- If you haven't started entering K-1 information, continue through the screens, entering the requested information.
