"MD state is showing taxable income" so what percentage is that income to the VA income? Not just from the K-1. The K-1 would logically have a huge VA loss, but who cares. e.g. $10,000 MD income compared to total $100,000 of VA income would mean you get 10% of the VA tax allocated against the MD income. 

Look at VA form OSC and see if it makes sense.