If you can, please look at the Two Inc Sub Wks (Two Income Subtraction Worksheet).
If you are using the CD/download software, you can see this by going to Forms.
If you are using the Online software, you can see it once you pay.
I am hoping you can see it and report back on what it says about either your income or your spouse's.
I see in TurboTax a message that appears when you enter the screen about Two Income Couples in the Maryland interview. The message says that if you change allocations after this point (which you did when you allocated all the pension to your spouse) that you need to go back to this Two Income screen to check and possibly update the allocations again.
Did you see that? I am thinking that it is possible that TurboTax does the Two Income Couple Subtraction only once as you pass through the interview, and you need to pass through the interview again when you make any changes.
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