I reported a negative $12,261.00 on Schedule E, Line 22 for 2020. Why isn't the system this year applying that loss against 2021 income?

This year i had to repot the ERAP I received and the system is reporting the entire amount as income, and it's not offsetting last year's loss.  NOwhere am I able to indicate the loss of last year and i was told it would carry over against either a sale or other income.