Yes, you are correct the MD code does allow the joint limit; however, the MD form instructions (extracted below) do not (see page 12 code ww instruction). TurboTax follows the state form instructions.
"A qualified individual may subtract up to $5,000 per year of the amount contributed to a designated First-Time Homebuyer Savings Account plus the earnings, including interest and other income on the principal, on such account. Enter the amount contributed during the taxable year to a designated First-Time Homebuyer Savings Account, up to $5,000, on Line ww1."
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