If you live in MD and work in PA you do not pay PA state income taxes. The two states have a reciprocity agreement.
If you are subject to local taxes in PA, you should include the amount paid in your MD tax return. See Maryland Form 502CR to determine if you are eligible for a tax credit for taxes paid in another state. MD instructions state "be sure to include your completed Form 502CR with your Maryland return, along with a copy of the return you filed with the other state and/or a locality in another state."
In Turbo Tax, when going through the MD state tax questions, be sure to respond to questions about taxes paid to other states.
