It appears you are entering this information under the wrong TurboTax topic. Schedule K-1 from your LLC should be entered under Personal >> Business Investments and not under Business >> Business Income and Expenses.
The Federal K-1 information flows to your California return as a Partnership K-1 that needs to be reviewed under State Taxes as "income that California handles differently". Entered and reviewed correctly, the K-1 income flows to California Form CA and then to Form 540.
Schedule IW is the LLC Worksheet for Federal Schedule C, not Schedule K-1.
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