Long term disability payments are complicated. You were smart to file the extension and make the estimated tax payments.
Officially the answer as to whether it's taxable income or not is "it depends." The source of the premiums paid for that disability policy is what determines whether you pay taxes on the income received.
If your employer paid 100% of the premiums, it's taxable income for you. If you paid 100% of the premiums with AFTER-tax dollars, its not taxable. If you paid the premiums with PRE-tax dollars, then it is treated as if your employer paid the premiums, and the income is taxable for you.
IRS Disability Insurance FAQs
In your case, you need to look back at your original long term disability insurance benefits and determine how those premiums were funded. Use that information to determine if you need to pay taxes on the income received.
I hope this helps!
Clarissa
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