You are correct the non-MD exempt interest dividends from 1099-DIV box 12 should flow to MD form 502 line 2. In my online and desktop products this appears to happen when I make the allocations for the box 12 amount. In online versions try signing out of your TurboTax account and clearing cache and cookies. Here is a link to assist if needed.
Then go back through the 1099-DIV entries and delete/re-enter the amounts including the box 12 allocations. While on the page to make the box 12 allocation you can check that the MD tax changes when you change the allocation amounts between MD and the other states and click continue. Look at the "state numbers" (MD) at the top of your TurboTax page.
Also, in online versions after making the entries, you can check the MD tax summary and you should see an addition to income for the non-MD portion (see steps below).
1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu
5. Select "MD Tax Summary"
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
