Does Social Security earnings limit apply to my LLC income or just W-2 earnings?

The earnings test absolutely applies to your LLC income if you're actively working in the business. For Social Security purposes, they look at net earnings from self-employment (what you report on Schedule SE) PLUS any regular wages. So yes, they combine both income sources toward that $1,950 monthly limit. If you earn above the limit in any month, you'll lose benefits for that month during your first year of claiming. After the first year, they switch to an annual limit ($23,400 for 2025).

I went through this exact situation last year! What matters is your NET earnings from self-employment, not gross LLC income. If your LLC has $3000 in revenue but $2000 in legitimate business expenses, only $1000 counts toward the earnings limit. When combined with your $1500 W-2, you'd still be under the $1950 monthly limit. The key is how you structure your LLC - if it's a single-member LLC filing Schedule C, SSA counts your net profit. If it's an S-Corp, they count your actual salary (not distributions).

actualy SS dosnt care about your LLC they only look at what you personaly earn. i have an llc too and my accountant told me to just pay myself less from the llc and leave money in the business and then ss dosnt see it!!

I've been dealing with this situation for 3 years. For a Schedule C LLC, Social Security doesn't care about when money comes INTO your business. What matters is when you EARN it. If you did $3000 worth of work in January but don't get paid until March, it still counts for January's earnings test. SSA follows the "earn rule" not the "pay rule." And yes, it's NET income (after business expenses) plus W-2 wages that count toward the limit. Document everything carefully because if you're audited, the burden of proof is on you to show when you actually earned the money.

back in 2022 I went thru all this myself and ended up spending HOURS on hold with SSA just to get basic questions answered!! so frustrating!!! their website is so confusing and the offices are always packed.

I am SO ANGRY at how complicated they make all this!!!! Why can't SSA just make ONE clear rule?? I've been trying to figure this out for months. My husband has an LLC and we're afraid to even APPLY for his benefits because we don't want to get hit with an OVERPAYMENT notice later! Has anyone actually successfully managed this situation without problems???

To clarify some confusion in this thread: For the first year after you claim benefits, SSA applies the monthly earnings test. After that first year, they switch to an annual test, where they only look at your total earnings for the year. This means after your first year collecting, you could earn a lot in one month and nothing in another, and as long as your annual total stays under the yearly limit ($23,400 for 2025), you won't lose any benefits. For LLC income specifically, they count it when earned, not when paid - this is a common misunderstanding that leads to problems.

Thanks everyone for the helpful information! I think I understand better now - I need to track my monthly net earnings from the LLC (after expenses) plus any W-2 wages and keep the combined amount under $1,950 for each month during my first year. Then after that, I just need to keep my annual total under $23,400 until I reach full retirement age. I'm going to call SSA directly to confirm this is correct for my specific situation before I apply. Really appreciate all the advice!