When does an SSI overpayment typically occur?

An SSI overpayment typically occurs when there are changes in a beneficiary's income or when income is not reported. This is because the Social Security Administration (SSA) uses the reported income to determine eligibility and the amount of benefits a person receives. If a beneficiary has an increase in income that exceeds the amount they are allowed under the SSI program, or if they fail to report the income altogether, this can lead to a situation where they receive more in benefits than they are entitled to.

In the case of an unreported income change, the SSA may find out later through various means, leading to the determination that an overpayment has occurred. Beneficiaries must report any changes in their income, work status, and other relevant information to the SSA promptly to prevent overpayments and potential repayment issues.

While not reporting any income could contribute to an overpayment, the broader context of income changes is important, as it encompasses both increases and decreases in income, making the second choice more comprehensive. Additionally, simply returning to school does not inherently lead to an overpayment; rather, it depends on the beneficiary's income levels during that time. Moreover, income exceeding a set threshold aligns with the concept but does not fully capture the critical aspect of reporting changes.