Computing Unused NOL to Carry Forward using Pub 536 Worksheet 2

[TechieGal]

I'm sturggling with Pub 536 Worksheet 2. Line 7 Adjustments to AGI. 

I'm good with Line 1

I created a second return in Turbotax omitting my NOL so I could compute Line 2 of the worksheet

Line 3 through Line 6 are zero

Line 7 is where I'm stuck

The instructions for Line 7 say to refigure my AGI using a list of 6 items of income and deductions. 

List Item 1 is Passive Real Estate Loss ($25,000)

List Item 2 is Taxeable Social Security $25,000

List Items 3 through 6 are not applicable to me

The instructions on how to compute the adjusted AGI don't make any sense to me. 

If it's helpful, this worksheet is for an NOL generated 3 years earlier that was carried forward year by year to this return.

I'll be grateful for any help you can give me to undestand the instructions.

Thanks!

[DianeW777]

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.