Social Security earned income offset


Q. I am 59 and retired in 2015 at 57 from a federal law enforcement position. I started a consulting LLC in Texas in 2018 and do not take regular draws from the company account. I am currently receiving Social Security supplement along with my pension.

Do the gross earnings of my LLC count toward the earnings test even when I do not take a draw equal to or greater than the earnings limit set for the current year 2018? Or, if I take a draw and maintain that amount under the limit, would any remaining funds in the LLC account be used for that calculation?

A. This is really a question for your CPA, but I expect that it will be the earned income that appears on your IRS Form 1040, and not your “draw” amount, that will be used to compute the offset.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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