Thank you @VolvoGirl, your "Maybe you had a lot of gains that used up the carryover." clarification has cleared everything up.
The $3K limit only applies to Ordinary Income. There is no such limit for applying the Capital Loss Carryover to future Capital Gains. I've reviewed the Schedule D's and confirmed that TurboTax has fully offset the Capital Loss Carryover against the Capital Gain on the subsequent years.
