@freddytax asked: "Does TT automatically apply my carryover to income before a capital gain?"
If you are asking if the capital loss carryover is applied to ordinary income first, that's not the way it works. TurboTax applies the carryover loss amount first to other capital gains before any excess net loss goes to offset ordinary income, which is limited up to $3,000 against ordinary income ($1500 if married filing separately.) See this FAQ and video:
FAQ: What is a capital loss carryover?
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-and-deductions/capital-loss-...
This answer has been verified for accuracy by an Intuit expert employee
