The MD state taxes use the adjusted gross income figure from the federal taxes, which is calculated by already subtracting $10,200 from taxable income. So when it gets input into the MD form, that $10,200 is already accounted for. The excess of $10,200 is then subtracted from taxable income for MD to get a net zero taxed by MD state (so long as your income is below the single/joint thresholds).
This would fulfill what the Act says.
