Enter the federal K-1 into TurboTax, and then when you complete the MD state return TurboTax will ask for the information needed from the MD K-1. The TurboTax question will ask if you need to make any adjustments to your K-1 form, and you will use the information from the MD K-1 to answer those questions.
To enter your Form 504 K-1 additions and subtractions, in your Maryland state tax return find the screen "Here's the income that Maryland handles differently". Scroll down to the Business section of that page, and find the Partnership and S Corporations Adjustments line. Click to Start or Revisit that section. You should get a question "Estate and Trust Additions". Answer Yes, and then on the next screen enter the name of the trust and the amount of your MD K-1 box 3 additions. Next, Continue and you'll get a screen for "Estate and Trust Subtractions". Answer Yes, and you'll get a box to enter your MD K-1 box 4 subtractions (enter as a positive number). Your Maryland Form 502 will now include the additions and subtractions related to your MD K-1.
Note that if any if the income from the federal K-1 is interest or dividend income, you may have answered a question about how much of that was from U.S obligations. TurboTax will automatically deduct that as a subtraction from your Maryland return. So, check line 13 of your Form 502 to make sure you don't "double-up" the Maryland subtraction by entering that "income from U.S. obligations" once as a response when you entered the K-1 and a second time as a trust subtraction.
[Edited 03/06/2020|9:25am PST]
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