Where do I record income from schedule K1, form 1041?

In the wages and income section of your federal return scroll down to 'Business Items'.  The second entry there is 'Schedules K-1, Q'.  Click start next to that and then again next to the 1041 option.  Then enter all the numbers from your K-1 into the exact same boxes in the system.

@shenne1947 

To enter the Schedule K-1 you will need to upgrade to the Premium online edition.

To enter a Schedule K-1

Click on Federal
Click on Wages & Income
Scroll down to S-corps, Partnerships, and Trusts
On Schedule K-1, Q, click on the start or revisit button

Or enter k-1 in the Search box located in the upper right of the program screen. Click on Jump to k-1