We inherited money from a farm sale in Iowa and we live in Arizona. The trust took out 20% from the inherited amount to the state of Iowa. We have entered the K1's in the proper area on turbo tax premier and have entered the inherited amount in our Arizona state under long term capital gain assets acquired after 2011. My question is do we file a Iowa state return and if so where do I enter the 20% monies already paid to the state of Iowa and do I also file a IA 1041 to the state of Iowa? I can't be taxed in both states for the inheritance so I am confused what to do. Thank you.
