I apologize for all the back-and-forth this has caused, but I did find a recent link that explains why this is being treated differently: it is because of the changes to the Maryland instructions and other updated state modification forms which remove the codes for passthrough decoupling, making it flow through lines 1 - 8 instead.
As long as you are able to report the amount on line 1 of Form 500 DM, while also flowing it to Line 5 for additions on the Maryland 502 income tax return, you'll be in accordance with the latest forms instructions and taxation of federal-state difference items per the Maryland income tax code.
If you would like to confirm this treatment before filing, you can contact the Comptroller about this issue at one or both of these email addresses:
taxforms@marylandtaxes.gov
MDSOFTWAREDEVELOPERS@marylandtaxes.gov (e-file questions)
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