I lived separately from spouse all of 2020 and my income does not exceed $100k. Why can't I deduct my 2020 passive income and carryover up to $12,500?

[MarilynG1]

It sounds like you should be able to deduct your passive income and carryover, since you did not live with your spouse in 2020. 

Since we can't see your tax return in this forum, I would recommend you pay for your return then review the worksheets calculating your deduction.

If you still need help, you can request an Offline Review where someone can review your return to determine what is happening.

Click this link for more info on Passive Losses when Filing Separately. 

[fanfare]

if you have a complex return, switch to the CD/download program, which customer support will assist you with if you already paid

you will be much better off.