If your state has the deduction, you will claim it when you file your state return. If this is for Maryland - you can claim the two-income married couple subtraction on your Maryland Form 502 (TurboTax will include the deduction). This is a state-only deduction that reduces your taxable income. Married couples filing a joint return, when both have taxable income, may subtract up to $1,200 or the income of the spouse with the lower income, whichever is less. See Marylandtaxes.gov
If you are asking about a different state, reply back.
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