It seems you are actually asking about Line 6 of Worksheet 2. Yes, you refigure your adjusted gross income (AGI) as if the NOL was not being used, then determine if your passive activity loss that was originally allowed changes, as well as your taxable social security. Once these figures are determined and if the AGI increases enter the difference on Line 6.
Line 7 deals only with itemized deductions.
Enter zero if you claimed the standard deduction and the amounts on lines 3 through 5 of Worksheet 2 are zero. Otherwise, use lines 10 through 26 of the worksheet to figure the amount to enter on this line. Complete only those sections that apply to you.
Please update here is you have more questions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
