Hi One4uTwo4me,
Not sure if you ever figured this out but I experience the same situation as you. I have to file a federal 1041 and California 541. You're correct in that there doesn't seem to be a California K-1 entry sheet for the Trust or Estate to post California adjustments in Turbotax. I found that the data source instructions message says to just override the figures in the worksheet that carryover to the schedule or forms you are trying to adjust. For example, if the adjustment is for nondeductible expenses of $500 and the Trust K-1 has passive income of $8,000 from lines 6, 7, or 8, then you would override the income reported in column (a) of the Pass Through Entity Passive Activities Smartworksheet at the top of form Schedule E, p2 to increase the income to $8,500. Do the same to the amount reported in Part III column (d) of form Schedule E, p2. Then enter the adjustment amount ($500 in this case) in column (c) for lines 6, 7, or 8 of the Beneficiary's Schedule K-1. Posting entries in this way should allow the federal amount to be report in column (b) of the K-1, show the adjustment amount in column (c), and the adjusted amount in column (d). The Turbotax Business software is not very sophisticated so if you want anything to report as additional statements for the K-1s, you will want to enter that information in the rows of section 14 (d) Other Information at the bottom of the Sch K-1 Wks to flow through to the Schedule K-1 for the Beneficiary or override directly in the Beneficiary's Schedule K-1. Any AMT adjustments can be entered in the same Forms under 12a - e. Hope this helps you going forward. 🙂
