Ask Larry

How Much Income Can I Legally Draw From My LLC Before It Affects My Disability Benefits?

hi,
so im getting SS disability , i do own an LLC(single member) and im receiving rental income there from a business that i also own , which is an S corp.how much can i legally draw from the LLC rental income before it effects my limit on the SS disability?
thamk you -

Hi,

There's no limit on the amount of unearned income you can receive and still qualify for Social Security disability (SSDI) benefits. The only type of income that's limited when a person receives SSDI benefits is earned income, specifically wages or self-employment earnings. Even earned income generally doesn't affect a person's SSDI benefits unless it's above the amount that Social Security considers to be substantial gainful activity (SGA). The monthly SGA amount in 2020 is $1,260, and in 2021 it is $1,310.

Whether or not your income would be considered as earned income by Social Security depends on the type of income and the nature of your services. Rental income is rarely considered as earned income unless the owner of the rental property provides daily services to the tenant, such as those provided in a hotel. Receipt of income from a wholly owned corporation can sometimes complicate matters, but if your only income is from renting something like apartments or duplexes and assuming that you don't receive a salary from the corporation then such income would almost certainly be considered as unearned.

If you have any questions given your specific circumstances, you should check with your nearest Social Security office.

Best, Jerry

Posted: 
Dec 10 2020 - 2:45pm
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