My spouse inherited a lump sum payout of $134,000 from her father's IRA when he passed away this year. How much of this will I have to put aside for taxes (fed/MD state)?

[waflleje]

My line 43 amount on the 1040A was 70k, and I paid about 10k in federal taxes last year in 2016.

[Hal_Al]

I think you meant line 43 of form 1040 (not 1040A), which is your taxable income. For Married Filing Jointly, that puts you in the 15% tax bracket. The first $5900 of your distribution will be taxed at 15% (federal). The next $77,200 will be taxed at 25%. The remaining $50,900 will be taxed at 28%. See https://taxfoundation.org/2017-tax-brackets/

Your are not required to take a total distribution in one year. You can spread it out. For details see.  https://ttlc.intuit.com/questions/2926769-i-inherited-a-traditional-ira-from-my-dad-when-he-passed-a... 

For MD tax rates, see http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Income_Tax/Tax_Information/

[fanfare]

best to leave the IRA intact and withdraw over time. However, as pointed out, if the lump sum was taken, there is no going back.