I inherited money on behalf of my siblings and my self. i am the benificiary. i received a form 1099-R and Federal income taxes have been taken out.

[emaymcgrath]

there were no state taxes taken. How do i figure out how much is being deducted from my tax return? I file jointly with my husband who is self employed, so it is hard to decipher how much to report to my brothers.

[dmertz · Accepted solution]

If you were the only designated beneficiary, it's your money and you are the one responsible for the taxes.  Any amounts that you gave to your brothers are gifts from you to them.  Gifts from that you make to any particular individual in excess of $14,000 (or $28,000 if it is treated as split gift from both you and your spouse) in 2016 require that you file a gift tax return (Form 709).

You may want to reduce the amounts of the gifts to you've made to your brothers to account for the taxes that you must pay on this income to you (jointly with your spouse).  I suggest calculating your tax liability with and without the distribution, calculate each brother's proportional share, then give each brother a gift of his proportionate share of the gross distribution reduced by that brother's proportionate share of the increase in tax liability that you incurred from receiving this distribution.