Child Tax Credit Payments and Updates: How to File a Payment Trace; Will You Get More Money If You Started in August?

The second round of child tax credit payments should have been delivered by August 13. Instead, reports have been filed for the missing money. Other families even complained they never received the July payment.

There is no one specific reason why your child tax credit money could have been delayed. Many factors could directly affect its processing and delivery progress. These issues vary person-per-person.

However, a few notable matters might have delayed the Internal Revenue Service (IRS) activities.

Child Tax Credit Payments and Updates

As previously mentioned, some families did not receive their child tax credit for July. The Seattle Times reported that these payments should be delivered by August instead. Specifically, half of the July payment will be added to the August child tax credit money. The remainder of the July payment will be delivered by later this month.

Unfortunately, August payments might also be delayed. The IRS and US Treasury do not elaborate, but a glitch escalated to an issue in their systems this month. August payments might be resolved with the September payments instead.

Is My Money Missing? How to File a Payment Trace

Eligible families who are searching for their child tax credit money could opt to file a payment trace. This would prompt the IRS to search your money earnestly. However, a specific timeframe should be followed. The IRS will only accept your payment trace if you cannot trace your money after:

• Five days since the direct deposit date. The bank must confirm they have not received the money
• Four weeks after payment via paper check was mailed to the registered address
• Six weeks since the payment was mailed and forwarded from the local post office
• Nine weeks since the payment was mailed, and you have registered a foreign address.

This option is highly suggested for families searching for their July 15 child tax credit payment.

To file a payment trace, download and complete Form 3911, "Taxpayer Statement Regarding Refund." Mail or fax the completed form to the local government agency responsible for these transactions.

Will You Get More Money If You Started in August?

Aside from the payment trace, you don't have to do anything to get the money.

Note that the IRS would automatically release payments to eligible families based on the most recent tax returns filed, either 2019 or 2020. Child tax credit money will be calculated based on the information listed.

Late filers who have only just submitted their tax returns would be processed late. However, it is still possible to receive the full amount. If you apply now, the complete budget for the child tax credit money would be divided by five months instead of six.

Lastly, be warned that asking the IRS directly for answers is not a good option. The company is infamous for its delays on the phone line: 800-829-1040.