After I download the .txt file containing my k-1, I go to Turbotax to import the file into the software program. However, Turbotax does not identify the .txt file. I can see the file but it is shaded out. Why doesn't Turbotax recognize the downloaded .txt file so that I can then import it?
You can only import a K-1 in .txf format.
See https://ttlc.intuit.com/community/entering-importing/help/how-do-i-import-from-the-txf-file/00/25642
I have an old note that says....
You can only import a K-1 to the Desktop CD/Download Software, not to Online version and if you can get a .txf file for it and in the right format. Apparently you can only import K-1s for MLPs and not Trusts or Estates. You can not import a K-1 from Turbo Tax Business Program.
I followed all of these procedures but the downloaded .txt file is grayed out. I am using a Mac desktop Premier version of TurboTax.