You need to make your entry in the federal section of TurboTax, when you enter your form 1099-INT. After your enter the form, you will be asked what state the tax-exempt interest belongs to, on the screen that says Tell us if any of these uncommon situations appply, to which you will check the box that says My state doesn't tax all of this interest. Then you will be given an opportunity to enter Maryland as the state the interest belongs to. If the interest belongs to several states, you can indicate that and list how much interest belongs to each state. Once you make those entries, they will flow down to the Tax-exempt interest on state and local obligations schedule on your Maryland return.
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