I received some money (cash) from the passing of a relative. I live in a state that taxes inheritance. Where do I enter that money in TurboTax on the state form?

Inheritance Taxes, nor Estate Taxes, are part of the Federal Income Tax system.

Hi, thank you for your reply.  If you read my question carefully I am asking about the State form, not federal.

Yes, understood, but added to reinforce to other readers who may come across this correct answer that inheritance tax is not related to income tax - unfortunately a very common misconception and therefore common question

Inheritance Taxes such as in Iowa have nothing to do with income tax and TurboTaqx supports filing income tax returns only.
If you were to do a simple search of Iowa  taxation you would find:
<a rel="nofollow" target="_blank" href="https://tax.iowa.gov/sites/files/idr/forms1/IA706Instructions%2860066%29.pdf">https://tax.iowa.gov/sites/files/idr/forms1/IA706Instructions%2860066%29.pdf</a>
<a rel="nofollow" target="_blank" href="https://tax.iowa.gov/sites/files/idr/forms1/IA706%2860008%29.pdf">https://tax.iowa.gov/sites/files/idr/forms1/IA706%2860008%29.pdf</a>
These form are meant to be filled out by hand!

RE: IOWA Inheritance Tax (not Income Tax!)  - IOWA ANSWER ONLY

It is important to know who is to receive property and the value of the property, because the Iowa inheritance tax is based upon each share of the estate. The tax is based upon a person’s (beneficiary’s) right to receive money or property which was owned by the decedent at the date of death. 

The entire amount of property, interest in property, and income passing solely to the surviving spouse, lineal ascendants, lineal descendants, and stepchildren and their lineal descendants (for deaths on or after July 1, 2016) is exempt from tax. Lineal ascendants include parents, grandparents, and great grandparents. Lineal descendants include children, grandchildren, and great grandchildren, whether biological or legally-adopted

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State Inheritance Tax, and Federal or State Estate Tax, are not a part of the Income Tax system.  

TurboTax only supports Income Tax filings.
Inheritance Taxes and Estate Taxes are not allowable deductions, in general, on Income Tax filing

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The ONLY STATES with INHERITANCE TAX on bequests to beneficiaries are:

• Iowa           - no tax assessed if decedent's estate is under $25,000
• Kentucky
• Maryland    -lowest top  tax inheritance tax rate pf 10%; small estates of under $30,000 exempt
• Nebraska   -highest  top tax inheritance tax rate pf 18%
• New Jersey
• Pennsylvania

All six states exempt spouses, and depending on state, exemption varies for immediate relatives.

The inheritance tax won't be included on your state income tax return. You will have to file an Inheritance IA 706 Return 60-008. See An Introduction to Iowa Inheritance Tax for detailed information. 

Hi, thank you for your response.  Looks like a Schedule K-1 form was submitted by the estate attorney.  Would that be sufficient for reporting of income?  I also read that grand children are exempt from inheritance tax in Iowa.