Get your taxes done using TurboTax

The program uses far fewer words to convey the message. The program is actually telling you: the amount on line 7 is the actual amount of loss but you are not able to claim the full amount, a limitation will be applied on line 21. In addition, you will have a carryover with another form. 

You don't want to change line 7 that the program calculated. 

You want to look down to line 21 for the actual limitation and you want to see the worksheet Cap Ls Carryfwd is in your forms with the remainder of the money.