In step 4 in your question, the blue box in TurboTax Premier will say Update, (see the screenshot). Then follow these steps to enter your passive losses
Follow the screen prompts to Rent and Royalty Summary and click edit on the line for the rental property you are working on.
On the page Review your......Rental Summary select Update on the Property Profile line.
Continue to the page Do Any of These Situations Apply to This Property then click the box I have passive activity real estate losses carried over from a prior year (see screenshot) select continue to the next page to enter your passive losses.
