For what it is worth mikik, I made calls to TurboTax's help desk and called two accountants for help on this when no one replied to this post. Everyone agreed that the best thing to do is to just put it in Line 38; even though Line 40 is where it "should" go. I don't know why TurboTax's software won't acknowledge Line 40 like they should, but the accountants agreed that ultimately anything in Lines 38-40 is treated the same for tax purposes and to just put it on a line that will show the correct credit on the software. So I put it on Line 38 and filed my taxes without issue. I did have to mail my state taxes in though because TurboTax won't E-file them with ID K-1 forms. Seems like an easy fix that TurboTax's could do in this situation, but nothing has been done about it.
