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Q.) If we have knowledge that a parent receiving a Child Tax Credit Payment has died, should the transaction be returned?
A.)
Advance Child Tax Credit Payments are not considered benefit payments (like Social Security, for example) and are not subject to reclamation. The ACH credit should be allowed to post to a valid account number, unless the account is closed. In that case, the transaction should be returned with the R02 return reason code (account closed). Otherwise, as the RDFI you should follow your normal procedures for deceased account holders.
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