The amount recovered, itself, wouldn't be taxable, but any interest that might have accrued on it would be.  Earnings after the date of death of your wife are taxable to the beneficiary of the account, or to the estate.

Please see the TurboTax Help article What if I didn't get a 1099-INT from my bank? for entry guidance.

Thank you for your response.

The accrued dividends and unexchange / recapita was all converted into cash by the state when it came into their possession.

I became aware of this unclaimed property in my husbands name 2 years after his death.

I received a check for the unclaimed property this year and no tax documents regarding how the state treasury reported it.

My understanding from your response is that the amount I received for the unclaimed fund in the form of a check is not taxable.

However, any interest earned if the check was deposited in a checking or saving account is taxable.

Am I correct in my understanding?

Thank you