Where do I report foreign inheritance fund? Do I Pay Federal Tax on inheritance fund?

 By inheritance fund I assume you mean you inherited money from a deceased individual and the money is being held in a trust or similar investment. If so, the original inheritance would not typically be taxable but the income earned on it each year would be. If the income consists of interest or dividend income, you would report that as you would income reported on a Form 1099-DIV or 1099-INT in TurboTax.  You will find the entry in the Wages and Income section, then Interest and Dividends, then choose the Interest or Dividend entry options. If you have capital gains on investment sales, enter that in the Investment Income section like you would a Form 1099-B, look for Stocks, Cryptocurrency, Mutual funds, Bonds, Other. In other words, you would enter you foreign investment income the same way you would enter investment income earned in the United States.

If you paid any foreign tax on your foreign income, you can see if you can get a foreign tax credit or deduction by completing the entries in  the Estimates and Other Taxes Paid section, then Foreign Taxes. You will find that in the Deductions and Credits section of TurboTax. Your foreign tax credit is limited to your tax on foreign income, but any excess can be carried over to future years.