If you inherit cash,
you do no need to include this inheritance on
your federal or state income tax return. The estate will pay taxes on this money that you inherit but you have no filing
requirement for inheriting the money. (This also applies to receiving a cash gift.)
However, if you
receive a gift or inheritance from a foreign person (nonresident alien) or from
a foreign estate and the total amount during the year exceeds $100,000, you are
required to report the gift on Form 3520. (This form is not supported in TurboTax).
Please refer to this IRS link for more information on Form 3520:
https://www.irs.gov/instructions/i3520/