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It appears that you have triggered the Pro-Rata Rule with the remaining balance of $5 in the Traditional IRA, which is not related to the catch-up contribution. A $345 tax increase in CA (where the top brackets are roughly 9%–13%) suggests that TurboTax thinks roughly $3,500 to $4,000 of your previously "tax-free" conversion is now taxable.   Since your Federal tax didn’t change, the issue is not the $5 balance itself. It is likely a basis discrepancy. Here is how to check:   If you had a large rollover IRA or SEP-IRA from a previous job, the backdoor Roth, that large balance can be the cause, since a portion of your conversion is being taxed based on that total. If this is the case, the tax is technically correct.   Check your California basis by going to your State return and ensure you have entered your total California basis for 2024. If California thinks you have a zero basis, it will tax the whole conversion.   Ensure your total California basis for 2024 and prior is entered so that the state knows you’ve already paid tax on the money.   Don’t change the 12/31 balance   Even if you convert the $5 today, your balance on December 31, 2025 does not change. Therefore, ensure you have looked at the basis entries to make any adjustments.   [3/16/26 8:56 a.m.] @LChohlis

The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)   The deduction is not on the same line as your standard deduction.  It is shown separately on line 13b.     2025 STANDARD DEDUCTION AMOUNTS SINGLE $15,750  (65 or older/legally blind + $2000) MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600) MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600) HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)     For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.   (The deduction phases out completely at $175.000 Single or HOH, or $250,000 joint)   The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it. IRS Schedule 1-A https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf   Need to see it? https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-return-filing/L77WCkvnu_US_en_US?uid=m681fkhr   If you are not getting the senior deduction it is because Your date of birth in MY INFO shows that you were not 65 by the end of 2025 Your income is too high You are filing married filing separately