Should my sister and I each report half of the 1099-G state refund received by our deceased mother’s estate (which we've inherited), and how do we do that in TurboTax?

[AnnetteB]

No, you should not report the state tax refund (or even your half) that you received from your mother's estate.  It is considered a cash inheritance and is not taxable income.

The only time that you would enter a state tax refund on your tax return is when you have received it for your own return.  This is to be able to determine whether it is taxable or not. 

[Debbiwes]

Our mother left her home in a land trust 

to my sister and me we will collect the money before end of year. How should we file now that the house sold.  What firm do we need to claim inheritance not income. 

[Critter-3]

Based on your question I highly recommend you seek local professional guidance.  

[Carl]

Our mother left her home in a land trust

to my sister and me we will collect the money before end of year. How should we file now that the house sold.

You should seek professional help. Especially if your state taxes personal income. If the property was titled to the trust and then sold, then "you" didn't sell it; the trust sold it. The sale would be reported on the 1041 trust return.  Now that's just "one" of many possibilities here based on my assumptions which are "not" based on any facts (since none were provided). Seek professional help for this please.

[tagteam]

I agree with @Critter-3: consult with a local tax professional (or legal counsel).

---

@Carl wrote:

.....if your state taxes personal income. If the property was titled to the trust and then sold, then "you" didn't sell it; the trust sold it. The sale would be reported on the 1041 trust return......

---

A "land trust" is somewhat of a term of art and does not necessarily indicate that the property was in an actual trust (at least not the type of trust that would require a 1041 be prepared and filed upon the death of the grantor).