I have followed the interview process through both the federal and state returns, requesting to walk through every topic and continuing once all income and deduction items have been addressed. Still the maryland return and related worksheets do not populate beyond calculating taxable income, ie, no deduction method is selected, deduction amount is entered, net taxable income is not calculated nor is my total MD state income tax due. My software is up to date, and in fact a second pair of returns(Federal and MD state) work fine.
The returns that worked fine are my own. The MD return that is not calculating is my daughter's. Although she is 21 and in college, I have not claimed her as a dependent. I have entered the fact that I can be will not claim her. This impacts her federal standard deduction of course. Could this have anything to do with the issue? There is one other aspect of her return that is not straightforward. She received a small excess distribution from her 529 account. Since it was due to her receiving a scholarship, it is not subject to a 10% penalty. Turbotax seems to assume that any excess distribution is subject to the penalty so I had to override the corresponding lines in the penalty column of Part VIII of the federal student information worksheet. These overrides seem to be necessary and are flagged as errors during the federal review. The state review, even though no tax is calculated, finds no errors.
