Is the K-1 from a Partnership (Form 1065)?
If so, is there an amount in Box 14 of the K-1?
If it a K-1 from a 1065, which box is checked for area "G" of the K-1?
Which box of the K-1 reports your income?
Did you indicate that you "Materially" Participate? That is different than "Actively" participate (although it is possible that TurboTax is using the wrong term).
Schedule C is not part of the situation. The K-1 shows up on page 2 of Schedule E.
