The program is pulling your federal income, triggering the tax regardless of the MD income. I am using the desktop version and can go into forms mode when needed to make adjustments while you are online.
For this year, I recommend you switch to desktop. It is very easy and you pick up right where you left off plus you can fix the issue by switching to Forms mode. You may be able to enter the correct $400 or you may need to right click and override.
Once you override a value, go back through step by step and see if the program picks it up, then you can cancel the override. You don't really want to file with an override; if you can help it, because that voids the accuracy guarantee. In your case, I bet your taxes are perfect by the time you file, so you may not be concerned.
See How do I switch from TurboTax Online to the TurboTax software?
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