Capital gains earned in a different state

Look for the Other State Tax Credit Summary (see below).  If you do not see a credit for the SC sale, you can add it here.  By giving you a credit for the amount you paid to SC, you will not be taxed twice on the same income. 

Ok I understand that part.  I'm trying to understand MD tax regulations I guess. MD is gaining tax which was earned in SC.  SC taxed the capital gains at their rate. MD is taxing me a their rate.  it seems both states are getting their due.  Where I expect MD not to have a dog in the fight.  SC should get the tax not MD. 

Does this make any sense?

Yes,  your resident state will tax you on all income from all sources.  That is the same for all states. 

Most states including MD do give a tax credit for taxes paid to another non-resident state to mitigate the double taxation.  You are also correct that the tax credit will not be dollar for dollar to cover the all the MD tax.  Basically, MD taxes at their rate and SC taxes at their rate so the credit will be the lesser of the SC tax you paid on the income or the MD tax on the income.  

I have the same year.  We live in OR and sold house in NC on 12/9/2022.   How do you get to that credit screen?  I am using the desktop version.  Thanks in advance

You will see an option for a credit for taxes paid to another state on the page in TurboTax that says Take a look at Oregon's Credits and Taxes:

You will see this when you go through the questions in the Oregon state program in TurboTax. @Rob_Dog 

Thanks for the help!  These questions are not appearing under State Taxes/Oregon.  

In TurboTax Desktop version the screens are different and shown below for your review.  Once you confirm the Credit for Tax Paid to Another State, TurboTax carries that to the appropriate location on the tax return. 

Once you finish your review, switch to forms and look at the 'Oth Stte Tx Cr (North Carolina). Please update if you have more questions.

@Rob_Dog