Real Estate Pro can not offset ordinary income with passive loss

Hi All,

 My wife is a real estate professional and I'm a W-2 earner.

 

 Having followed various threads on this forum, I believe i've properly checked the right boxes to recognize her "real estate Professional" status in Turbotax, I was expecting that any carry-over passive loss from rental activity can be used to offset my "active (W-2)" income. However, it appears that we still have passive activity losses that's "disallowed (see last screenshot from Schedule E Worksheet where it says $5844 is still disallowed)." 

 

Is there somewhere else I didn't do properly? 

 

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