Month 2 of child tax credit hits bank accounts
The U.S. Department of Treasury says the second monthly child tax credit payment has begun to be disbursed.
More than $15 billion will be paid out to families of about 61 million children.
The first round of the payment went out in July. The payments stem from the Child Tax Credit from the $1.9 trillion coronavirus relief package passed by Congress in March.
Under the plan, eligible families receive up to $300 a month per each child under 6 and up to $250 per month for children ages 6 to 17. The payments are set to lapse after a year, but Biden is pushing to extend them through at least 2025.
The August payments cover about 1.6 million more children than last month. The uptick indicates that more families who don't file taxes are signing up for the credit. The IRS has been trying to raise awareness that all families should apply. It also announced a a new, mobile-friendly, bilingual sign-up tool to help enrollment that will launch in the next few weeks.
Direct deposits should arrive in bank accounts Friday. Most families received their August payments by direct deposit. The rest will receive checks in the mail. The Treasury Department said due to a technical problem that should be solved by September, about 15% of families that received direct deposit payments in July will receive their check by mail in August.
Families can visit the Child Tax Credit Update Portal to check on their payment status.