I have a rental loss carryover of $5441 last year. This year I have passive income of $4967. Why is the loss carryover last year not offsetting this year's income?

Have you entered the passive loss carryover for the rental property with income this year? In some cases, TurboTax doesn't automatically enter carryovers.

To confirm the carryover has been entered, return to your rental property profile. Look for the page "Do any of these situations apply?" and check the box for "I have passive activity losses carried over..." Continue to the next page and enter/confirm the amounts for regular, AMT, and QBI carryovers. The next page asks for these carryovers by year.

You can review the calculation of current year profit/loss using Forms Mode (click the Forms icon in the TurboTax header). Open Schedule E Wks for the rental property with the carryover. Scroll down to Activity Summary Smart Worksheet. Lines D through I calculate the allowable profit/loss.