First year with the rental. TurboTax says my rental lost deductions are zero because I make over 150 K income. Is there still carry forward?

Yes.  Residential rental activities with losses when the taxpayer has income over the phaseout level are allowed to carryover the passive activity losses until they can use them or until the property is sold.  Form 8582 will show the allowed and unallowed losses as well as the carryover amount for 2023.  Be sure to keep the form available so you can check to be sure the carryover appears on your 2023 tax return.

Active participation is a requirement to be allowed to reduce other income by the loss on your rental property.  There is also an income limit that begins to reduce that amount.

Phaseout Rule: The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately). If your modified adjusted gross income is $150,000 or more ($75,000 or more if you’re married filing separately), you generally can’t use the special allowance. This is because the special allowance is reduced to $0 since the modified adjusted gross income is over the $100,000 amount.

• Sign into your TurboTax return > Search (upper right) > Type rentals > Press enter > Click on the Jump to... link > Edit next to the Rental Activity  > Edit next to the Property Profile or General Info > Continue to the question about active participation
• Continue to the end of the section for TurboTax to save your changes.