On Sept. 15, the IRS delivered a third monthly round of approximately 35 million child tax credits (CTC), totaling $15 billion. However, the IRS system had a technical issue. As a result, approximately 2% of eligible taxpayers did not receive the September payment.
According to an IRS statement, the impacted group primarily included taxpayers who recently made an update on their bank account or address on the IRS CTC Update Portal and affected payments to married filing jointly taxpayers where only one spouse made a bank or address change.
The IRS has since resolved the technical issue, and these individuals should have received their payments by direct deposit on Sept. 24, or this week for those receiving checks by mail.
Generally, there are multiple reasons why people may be seeing a different amount than expected. If only one spouse changed an address or bank account, the other spouse’s half could be going to the old address or bank account. In these instances, the full payment will still be distributed. Monthly payment amounts can also change depending on recently processed tax returns. The IRS encourages people to check the IRS CTC Update Portal for the latest payment information. (Source: NATP TAXPRO Weekly, 9/30/21).