TP has a Loss Carryover of 20K from previous years.  2020 and 2021.  Loss was from an S-Corp and Capital Losses. (10K each)

The only income for 2022 was W2 income.

The carryover worksheet shows Qualified business loss carryforward of 20K.  I thought the system would give a 3K loss deduction in 2022 against the W2 income.

Am I thinking incorrectly?

Thanks in advance!