TurboTax does not automatically apply the exemption, because it only applies to unemployment received from Maryland and some of its neighboring states. If your unemployment is from Maryland, WV, VA, PA, or DC you can exempt it once you begin your Maryland return. TurboTax asks on the Maryland Benefits from Unemployment Compensation screen to enter your Maryland-Source Net Unemployment Compensation. If you enter the entire amount and you meet the eligibility requirements, it will be subtracted from your Maryland income.
If you missed that screen, you can re-enter your Maryland return by selecting Continue next to Maryland in the Status of your state returns screen. It will pop up after confirming your residency status and health care. If it does not come up, on the Here's the income that Maryland handles differently screen, scroll down to Miscellaneous. Unemployment Compensation is the first selection.
If you received unemployment from a different state than the ones listed above, it is not eligible for the Maryland exclusion.
