@KrisD15 is correct, the reciprocity agreement only applies to wages.
But you have an interesting situation. I'm of the opinion (an opinion I'm not very sure of) that it can be reported as VA income only. It appears to be one of two possible things and maybe a combination. The income appears to be related to your wage work and or your academic pursuits. Taxable scholarship to out of state students is not usually considered taxable by the state the school is located in. MD treats taxable scholarship as earned income.
Other than the cost and hassle of preparing an MD return, it comes out even. VA will give you a credit for any tax paid to MD.
A separate issue: how are you reporting the income. If entered at the 1099-G screen, it will be treated as unearned income ("other income").
Another way to enter fellowship oncome:
Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).
After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line was added in 2022).
*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.
