That also depends. Part of the question is whether or not the "refunds" (likely reimbursements) you receive are taxable or not. Since LTC insurance is usually after-tax, the benefits should be non-taxable benefits. However, you may want to check with your insurance carrier to see how they report the benefits you received for tax purposes. If those payments are non-taxable, you wouldn't have any additional issues other than to determine how much tax you must pay for pension/Social Security income.
Even if that income is taxable, however, you are still not required to make any estimated payments unless:
- You will owe more than $1000 in tax at the end of the year, and
- The amount of tax you will have paid in (including withholdings) is either 90% of your tax due for the year, or you paid in enough tax (through withholdings and/or estimated payments), to be able to match (or exceed) your tax liability for the previous tax year (tax year 2018). If you are a "high-income" earner, you might have to match 110% of your 2018 tax liability. (You would need significant 6-figure income to reach this threshold. Since your income is fixed that is highly unlikely for you.)
In any situation where a taxpayer is considering estimated payments, it is generally wise to not overestimate the amount of tax needed. Otherwise, you are giving the government a tax-free loan. It makes more economic sense to owe a little at the end of the year than get a large refund. But that choice is still up to you.
You can, therefore, choose to make an estimated payment even if not technically required. I do recommend that if you are leaning to making an estimated payment, make sure the reimbursement is going to be taxable to determine the right amount of tax to pay in.
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