Yes, in the distributions section enter the full amount distributed ($10,000). TurboTax will include this on Schedule B lines 9, 11 and 13. Because the taxable amount on line 14 is less than the amount on line 13, the income distribution deduction on line 15 will just be the taxable amount from line 14 and this same amount (or a lower amount if the estate has deductible expenses taxes and fees) will appear in box 5 of the Schedule K-1 that the estate provides to you for reporting on your individual tax return.
