Out of the around 36 million second installment child tax credit payments that went out starting Friday, 15 percent of those who received direct deposit payments in July will get paper checks.
An unspecified issue led to the change in payment method, according to a Business Insider report.
Listen to your favorite News/Talk station now on Audacy.
Parents can check what type of payment they are expected to receive through an Internal Revenue Service online portal. Those depending on money being immediately available in their bank accounts may have to wait “up to a week,” for their checks, said Business Insider.
It is unclear if the direct deposit issue impacted people who used the portal, including parents with no tax obligation that the IRS urged to use the online tool, according to the outlet. When the first round of payments went out last month, some criticized the portal for looking “like crap,” and not being available on mobile devices.
So far, 68 percent of U.S. adults who have received the child tax credits have spent the funds or used them to pay down debt, said a Census Household Pulse Survey. Items bought with the money included school books and supplies, food and clothing, according to Business Insider.
Related
If parents were able to sign up in time for the first payment in July, child tax credit payments could be as much as $300 per month for children under six through December. Parents who are receiving their first check this month could see as much as $360, as the payments will be spread over five months rather than six. For children older than six who will be under 18 by the end of the year, payments could be as high as $250.
Payment amounts depend on household income.
Parents who were impacted by an issue with the first round of checks may also receive more money this month. According to Business Insider, issue involving parents who have an Individual Taxpayer Identification Number (ITIN) not getting their July payments has been resolved and a batch of payments will be sent with the Aug. 13 checks. A second portion of the payments will come in late August.
Related
Going forward, eligible parents should expect to receive Child Tax Credit payments on the 15th of each month from September to December.
Parents who are getting a paper check this month but received a direct deposit in July don't need to re-register online or take additional steps to get future payments directly to their bank account, the IRS said.
LISTEN on the Audacy App
Sign Up and Follow Audacy
Facebook | Twitter | Instagram