Note:

See Exhibit 21.6.3-3, TC 971 AC 199 MISC Field Descriptions for Advance Child Tax Credit (Adv CTC) Payments, for a list of MISC fields and their descriptions.

Scenario

Posts With

(1) Eligible taxpayers with a filing status other than MFJ

The TC 971 AC 199 will post with the total monthly AdvCTC amount.

(2) MFJ return:

Neither taxpayer is deceased,

Not innocent spouse,

Not VODV,

Not unenrolled, and

Not incarcerated

The TC 971 AC 199 AdvCTC amount is split in half (50/50) between the primary and secondary taxpayers.

(3) MFJ return:

Neither taxpayer is deceased, and

Is innocent spouse or VODV

The TC 971 AC 199 AdvCTC amount will match the amount of the credit in the adjustment posted to the tax module. (The credit was already split 50/50 between the Primary and Secondary taxpayers for the TC 290 adjustment.)

(4) MFJ return:

One spouse has unenrolled

The TC 971 AC 199 will post for the taxpayer who is enrolled with an AdvCTC amount that matches the credit in the adjustment posted to the tax module. (The credit was already split 50/50 between the Primary and Secondary taxpayers for the TC 290 adjustment.)

(5) MFJ return:

One spouse is deceased

The TC 971 AC 199 will post for the surviving spouse with the total monthly AdvCTC amount.

The TC 971 AC 199 will post for the deceased taxpayer with an AdvCTC amount of zero.

(6) Ineligible taxpayers

The TC 971 AC 199 will post with an AdvCTC amount of zero.

When systemic or manual adjustments to AdvCTC are input, a TC 971 AC 199 (systemic) or TC 971 AC 195 (manual) will reflect details of the credit on the taxpayer’s entity. Refer to the table below for MISC Field format and descriptions:

TC 971 AC 199/195 MISC Field

Field Description

(1)TC 971 AC 199 (systemic) only:NNNNNNN kktyCTCYYmm

AdvCTC was computed and issued

NNNNNNN - dollar amount, including cents

kk - number of qualifying children

ty - tax year of payment (00 or 21 = 2021)

CTC - computed for AdvCTC

YY - tax year used for computation (19 = 2019, 20 = 2020)

mm - indicates month of the payment (07 = July, 08 = August, etc.)

(2)TC 971 AC 199 (systemic) only:NNNNNNN kktyREVCTmm

AdvCTC was reversed systemically (e.g., returned payment)

NNNNNNN - dollar amount, including cents

kk - number of qualifying children

ty - tax year of payment (00 or 21 = 2021)

REVCT- systemic reversal

YY - tax year used for computation (19 = 2019, 20 = 2020)

mm - indicates month of the payment (07 = July, 08 = August, etc.)

(3)TC 971 AC 199 (systemic) or TC 971 AC 195 (manual):NNNNNNN kktyxxCTCADJ

Systemically generated when a manual adjustment for AdvCTC is input resulting in a refund (TC 971 AC 199)ORManually input when AdvCTC is moved from one account to another (TC 971 AC 195)

NNNNNNN - dollar amount, including cents

kk - number of qualifying children

ty - tax year of payment (00 or 21 = 2021)

xx - indicates month of the payment (07 = July, 08 = August, etc.)

CTCADJ - indicates positive manual account adjustment

(4)TC 971 AC 199 (systemic) only:NNNNNNN kktyxxREVCTC

Systemically generated when a manual adjustment reversing AdvCTC is input (TC 971 AC 199)

NNNNNNN - dollar amount, including cents

kk - number of qualifying children

ty - tax year of payment (00 or 21 = 2021)

xx - indicates month of the payment (07 = July, 08 = August, etc.)

REVCTC - indicates negative manual account adjustment

When a TC 971 AC 199 with MISC "EF" is posted on the entity (CC IMFOLE):

Unreversed TC 971 AC 199 "EF" with Blocking Series other than 99999 is present: The payment will be issued as a direct deposit to the latest EFT account associated with the indicator.

TC 971 AC 199 "EF" with Blocking Series other than 99999 is not present: The payment will be issued as a paper check.

A posted reversal TC 972 AC 199 "EF" and no subsequent TC 971 AC 199 "EF" with Blocking Series other than 99999 is present: The payment will be issued as a paper check.

Innocent Spouse or VODV issue: The payment will be issued as a paper check unless the entity contains a posted TC 971 AC 199 "EF" with Blocking Series 77777.

When the entity does not contain a TC 971 AC 199 with MISC "EF" (Blocking Series other than 99999), the payment will be issued as a paper check when one or more of the following conditions exist:

The tax year 2021 module contains an unreversed TC 971 AC 850 (refund flipped to paper), unless the last posted unreversed TC 971 AC 199 "EF" has Blocking Series 77777.

The tax year 2021 module contains a systemically reversed AdvCTC direct deposit refund issued for a previous month.

The tax year 2021 module contains a TC 841 with Blocking Series 77711/77712/77713/77714 unless there is a TC 971 AC 199 "EF" with Blocking Series 77777 posted after the cycle of the TC 846.

The tax year 2021 module contains a cycle date for the latest TC 846 that is later than the date of the TC 971 AC 199 "EF" with Blocking Series other than 99999 and there is a subsequent TC 841.

When an AdvCTC payment is returned/rejected by the bank, the AdvCTC account transactions (tax module and entity) will be systemically reversed EXCEPT when:

The payment is a returned direct deposit (Blocking Series 77777) for a taxpayer who is not deceased (both primary and secondary for MFJ) and/or there has not been a name line change from 2019 to 2020. These will be reissued as a paper check.

The payment is a returned direct deposit and there is a later posted TC 971 AC 199 EF with Blocking Series other than 99999. These will be reissued as direct deposit to the new bank account.