TurboTax is claiming that my husband and I can't e-file in Maryland because we live in different jurisdictions. We do not. Why is this broken and why can't we fix it?

In the step-by-step mode in the MD state interview you will need to verify both the county and taxing area information for both of you match.  Here are the steps:

1. Continue your MD interview
2. Edit the "General Info" section
3. Verify Residency status and continue
4. Verify/enter the resident county for the primary taxpayer and the physical address
5. Check the box confirming your address on 31 Dec
6. Continue
7. Enter the city or town that is the local taxing area for the primary taxpayer
8. Enter the county for the spouse (should match primary taxpayer county)
9. Enter the city or town that is the local taxing area for the spouse (should match the taxing area of the primary taxpayer)
10. Continue through the interview