Treasury, IRS release second round of Child Tax Credit payments

The U.S. Treasury and IRS have released the second round of the 2021 Child Tax Credit payments, with more than $15 billion paid to families that include roughly 61 million eligible children.

The vast majority of families will receive their August payments by direct deposit and the remainder will receive checks in the mail, according to the Treasury. However, due to a technical issue it expects to be resolved by the September payments, a percentage of recipients — less than 15% — who received payments by direct deposit in July will be mailed paper checks for the August payment, the Treasury said.

The Treasury also reported that the share of families reporting that they sometimes or often did not have enough to eat in the past week dropped to the lowest percentage since the pandemic began. Further, parents are using the payments to pay for basics for their children. Roughly half of those who received a July payment reported using it to pay for food, while one in four spent some of the funds on clothing, according to the Treasury.

Families can visit the Child Tax Credit Update Portal to see if they’re receiving a direct deposit or paper check this month. Frequently asked questions about the 2021 Child Tax Credit are available on the IRS website.

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