Maryland exclusion will be handled on the federal side of your tax return. The information will then flow to your state tax.
Please enter the form 1099-R into TurboTax exactly as it appears in the Retirement section. Once the form is entered, answer some follow up questions until you will arrive at Select your State screen - be sure to select Maryland (see pic) and answer follow up questions. The program will ask you about the distribution, select Active duty military retirement. Then Indicate that it is a NON-qualifed plan.
Please start over your state tax return once above data entry is completed.
