Losses realized in connection with Section 1256 contracts can be carried back up to three years. However, there are limitations to using such losses to offset gains from prior years. It is also an election, thus, if you did not make that election to carry back the remaining loss amount, then its available for tax year 2022.
You probably are correct in that the reason you are not seeing the carryover loss on this year's return is because line 6 of Form 6781 reflects that you have elected to carryback your $1,234 loss. Moreover, box D may also be checked indicating that you have made the election to carry back the loss.
Go ahead and enter your carryover loss in the section of TurboTax that relates to Capital Loss Carryover. If you are using TurboTax online, then from Your income and expenses screen, scroll down to Investments and Savings and select Capital Loss Carryover and proceed to enter your information. In TurboTax CD/download, the process is similar except from the Wages & Income or Personal Income tab, scroll down to Investment Income and select Capital Loss Carryover.
You might consider amending your 2021 return to change the election on line 6 of Form 6781; however, it is not all that clear that you need to amend. The IRS recommends that a taxpayer file an amended return when there's a change in your filing status, income, deductions, credits or tax liability. The change you are about to make to your 2022 tax return will not change any tax liability, credit, or deduction on your prior year return. However, out of an abundance of caution, perhaps it's appropriate to amend.
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