To indicate active participation in an investment that sends you Schedule K-1, return to that area of TurboTax and review your entries.
The easiest way to find this section of TurboTax is to search on "schedule k-1" and click on "jump to schedule k-1" to go directly to the start of this section.
Click Edit/Update beside the type of K-1 you need to work on, then click Edit beside the company you wish to review.
Follow the prompts to the page "Did You Participate?" If you answer "yes" to Material Participation, the income from Schedule K-1 will be treated as non-passive income.
Income from Schedule E (rental real estate, royalties, partnerships, etc.) are reported on Form 1040 Line 17.
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