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I also found this but I do not understand what you reply. In Federal we only had 10k SALT deduction, then in California when calculating deduction we should use 10k instead of 40k, no?   By adjustment, I wonder how did you do it? Thanks

I think you're absolutely right........confirmed by multiple posts...glad that I posted asking about this or else I'd have made the wrong assumption !! Thank you so much...   https://ttlc.intuit.com/community/retirement/discussion/re-if-i-performed-a-backdoor-conversion-from-a-traditional-ira-to-a-roth-ira-for-the-year-2025-i/01/3817170#M262287   https://www.reddit.com/r/Bogleheads/comments/1r180fm/comment/o4ntclk/   https://ttlc.intuit.com/community/retirement/discussion/i-did-a-late-backdoor-roth-conversion-in-2026-for-year-2025-i-did-not-receive-a-1099-r-so-do-i-still/00/3853375

@OhTheQuestions you are confusing two separate issues.   1) if you are eligible for Bailey, you are ALWAYS eligible for Bailey.  If you are Bailey elgiible, the vesting date should be listed at the bottom of Form 1099-R.  If the word "vesting and the date Aug 14, 1989" is not listed you are NOT and have never been Bailey Eligible.  This only affects your NC tax return - and not the federal.  If you are Bailey eligible, NC will not tax your State Pension.  Your federal tax return will tax the pension.    You are Bailey eligible if your pension was vested as of 8/14/1989 which generally means you began working for the State or local government prior to 8/14/1984.     2) Separately, you contribited after tax dollar through your paycheck to your pension when you were working.  Since those dollars were after tax dollars, then when you receive your pension you are not taxed on the part of your pension that represent those after tax dollars.  That is why Box 1 and Box 2a were different.  The IRS requires the pension plan to amortize those dollars over time.  Once the amortization period is complete, Box 1 and Box 2a will be the same.  THIS HAS NOTHING TO DO WITH BAILEY.   I not sure why it's asking all the questions about the general or simple method.  You may want to delete the 1099-R and start that section again.  However, as long as the 1099-R indicates your vesting date,  you will indicate that you are subject to Bailey.  You will always be subject to Bailey.  If there is no vesting date, you are NOT Bailey eligible. 

That's an interesting perspective and may be correct as well. However, a couple of days ago when I had set up an appointment with a TT Expert and talked to him for a while, I literally read out all the steps mentioned in the two links that I've shared and he confirmed that I am on the right track (including Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA)...but it's possible he may not have fully understood or missed some key points during our conversation....   Hopefully  @DanaB27 or @dmertz or @RogerD1 will tell me what's the right way to approach this...

I appreciated your guidance. I don't seem to have access to that section via the Deductions & Credits options, though. These are the only options I have. Is there an alternative approach?        

the refund may not be fully taxable even if you itemized 1) becuase the s income taxes paid in 2024 exceed the deductible limit of $10,000 or 2) Some of the taxes were paid in 2025, like a 1/15/2025 estimate for 2024 or an extension payment     TurboTax has a state tax refund worksheet thta should calculate the taxable portion if you useed TurboTax for 2024    

@CatinaT1 Please verify what you suggest here actually works, instead of misleading people like me. If you don't know the answer, please keep quite.   There is no such thing as Turbo Tax Customer Service. If you were unlucky enough to sign up for 'expert' service, the customer service link connects you right back to yet another 'expert' And they keep telling you that, once you are hooked on to the $150 expert bait, you just cannot unhook, yourself. There is simply no way out of the 'expert' world. I used TurboTax for 10+ years. And I have no choice now, but to find alternative. Good bye!