Internalizing and externalizing behavior problems are established risk factors for many unpleasant outcomes and psychopathology in adulthood, and understanding the interplay between genes and environment is important for deducing implications for therapeutic interventions. Among genetic studies on internalizing and externalizing problem behavior, the heritability estimates differ widely. Most research only uses twin data and other-reports, and therefore certain limitations are inevitable. Our study is the first to investigate genetic and environmental influences on problem behavior using a Nuclear Twin Family Design and self-reports, in order to address these limitations. Internalizing and externalizing problem behavior of 3,087 twin pairs (age 11–23), a sibling, and their parents were analyzed with structural equation modeling to estimate heritability separately for each of three twin birth cohorts. Genetic influences account for about one-third of the variance for both internalizing and externalizing. Shared environmental influences were only found for internalizing, and through the advantages of considering data from the whole twin family, firstly could be identified as solely twin-specific. Our findings could contribute to a better understanding of the gap between heritability based on twin studies and DNA-based heritability (‘missing heritability problem’): Results indicate that heritability estimates gained via classic twin design and other-reports are slightly overestimated and therefore environmental influences, in general, are more important than previous research suggests. Simultaneously, we showed that family-specific environment either contributes to behavior problems only on an individual level, or that it has a lesser influence than originally thought.