You do have to enter the K-1 into your tax return. Amounts in boxes 1-8 are income generated by the estate and passed on to you as a beneficiary. The beneficiaries pay the tax. TurboTax will put the income and the deductions in the proper place on your tax return.
Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal 1040 federal return. The difference is, you are receiving a portion of the income the estate is generating, not the cash or property that was held by your aunt (that would not be taxable). That's why you have to put it on your tax return.
