You should not be taxed at all if it were a loss. Did you enter this in the Investment section? Go back over your entries and see how you entered your amounts.
Thx Coleen. I was unclear. The capital loss was over $3K and TT correctly applied only $3K of the loss to 2020. On that $3K, I expected a lower tax amount of $600 (20%) but TT calculated it at $1,110 (37%). I also simulated what TT would calculate had it been a gain. That returned a tax increase in amount of 20% of the gain, which I expected. Why would TT use 37% when it's a capital loss and 20% when it's a capital gain? And yes, I reported this in the Investment section.
It may be the way you created your scenario. A capital loss or gain is 20% but an ordinary gain or loss is 37%. Turbo Tax may have interpreted your data as being an ordinary loss but this is just pure speculation on my part.
You may wish to contact tax support at 1-800-446-8848 as they have the ability to look at your screen to see how your calculations were applied.