My sister and I had a joint account set up that we paid our mother's nursing home expenses from. Our mother recently passed away and we have dissolved the account and split the money. My name was on the account, but my sister's social security number was listed first and she paid the taxes for the 2 years that we had the account. Do I have to pay taxes on my half or do I need to show the disbursement as income?

Assuming you are on good terms it your sister, the easy and fair thing to do is simply reimburse your sister for half the income tax she had to pay for the two years. I don't understand your question about reporting the disbursement as income - are you asking about the interest the account received, or are you asking about the return of the original principal? What was the original source of funds two years ago?