Does a lump sum settlement count for the entire year or only for the month in which it was received as it relates to the Obamacare subsidy? I have seen conflicting information on the internet. The settlement relates to income received from a divorced spouse. The liability accumulated over several years, but settled this month with the payment. Rephrased, the payment is large enough that if counted for the whole year, the entire year subsidy would be zero, but if counted only in the month received, the result would be losing the subsidy for only one month.
Lump-sum income is counted for the month for Medicaid and Medicare, but for ACA subsidies we believe it counts as annual. Think the confusion comes from the fact that it works different for Medicaid and Medicare. Check out the Berkeley page on MAGI, notice that lump sum is excluded from Medicaid eligibility only.
Still if you are talking repayment limits you may want to err on the side of it counting only for the month and seek some professional tax advice. We are going to look for laws and regulations to back up our claims with citations (sure it's all in some federal register somewhere). If you get advice in the meantime please come back here and leave a comment for our readers.