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Ask Lane Your Own Question
Category: Social Security
Satisfied Customers: 12481
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I wondering how passive income from my S Corp. affect my

Customer Question

I wondering how passive income from my S Corp. affect my Social Security Benefits?
JA: These retirement benefits are supposed to help us but they can be so complicated! The Retirement Expert will help you get the most benefits propertly. Please tell me more, so we can help you best.
Customer: I started drawing my early SS benefits in January of 2016. I own a small Real Estate Office that is formed as an S Corporation. I've read some publications that state that this pass through income does not affect my SS benefits and other that I'm not sure what they are saying. Could you please explain. Thanks
JA: Is there anything else important you think the retirement accountant should know?
Customer: I'm not sure.
Submitted: 10 months ago.
Category: Social Security
Expert:  Lane replied 10 months ago.

Hi. My name's Lane ... I can help here.


I have a law degree, (Juris Doctorate), with electives in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.


Please bear with me a moment while I prepare you response

Customer: replied 10 months ago.
Are you still there?
Expert:  Lane replied 10 months ago.

So sorry, but if you're involved in the business, make decisions, etc. that's not passive income.


Both the required salary of the S-Corp and the K-1 allocation of profit is considered earned income for purposes of Social Security reduction.


The annual limit in 2016 is 15720

Expert:  Lane replied 10 months ago.

Is tis just rental income? Or are you an agent/broker

Customer: replied 10 months ago.
I've taken no income, salary or distribution. Does this make a difference?
Customer: replied 10 months ago.
I am an agent, and did not take any commissions this year.
Expert:  Lane replied 10 months ago.

Then there's no income.... It's when they see that income reported on the return (or as withholding for an employee) that there would be an issue

Customer: replied 10 months ago.
Expert:  Lane replied 10 months ago.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here


Thank you,