I am not sure where the confusion is? If you are going to file with TurboTax anyway, pay the filing fees for the federal and state taxes, and then you will be given access to the actual tax forms that will be filed for you-- you can see where the deductions are taking place here if the TurboTax UI is not making sense for you.
On federal form 1040 line 9, that is your income. This is calculated by taking your income + (total unemployment compensation - $10,200). So $10,200 is already subtracted from your taxable income.
Your income above is input into MD form 502 line 1. So $10,200 is already subtracted from your MD taxable income. Then the excess of $10,200 is also subtracted from MD taxable income (MD form 502LU line 7) to get your MD taxable income. So if you are within the income threshold, the MD taxable income has ZERO taxed on total unemployment compensation ($10,200 and any excess).
