An IRS snafu means millions of families who got the child tax credit auto-deposited in July will get paper checks this month instead

• Another monthly child tax credit payment is on the way to about 36 million US families.
• Some 15% of families who got a direct deposit payment in July will receive a paper check in August.
• The IRS didn't explain why, but said the issue will be resolved by the next payment on September 15.
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The Internal Revenue Service announced Friday that another child tax credit payment - the second of six monthly payments - is on the way to about 36 million families.

However, due to an unspecified issue, the IRS said up to 15% of families who received the money in July by direct deposit will be getting a paper check this month. Direct deposit makes the money available in a recipient's bank account within one to three days, while paper checks can take up to a week or more to arrive by mail. Parents can check how their payment is coming on the IRS website.

The IRS has been encouraging parents with no tax obligation to use its online portal to sign up for direct deposit payments for smoother and quicker payment processing. It's unclear if the issue with this month's delivery method affects those who used the portal.

Parents who are getting a paper check this month but got a direct deposit in July don't need to re-register online or take any additional steps to get future payments in their bank account, the IRS said. The issue is expected to be resolved by the next payment date, September 15.

Most families are using the money quickly to pay for household necessities. A new Census Household Pulse Survey revealed that nearly 68% of US adults who received the child tax credit payment in July spent it or used it to pay down debt, Insider's Madison Hoff reported. Those who spent the money paid for school books and supplies, food, and clothing, among other items.

Some payments may be larger than $300

The monthly child tax credit payments have been described as up to $300 per child under age 6 and up to $250 per child 17 and under. But families who are receiving their first payment in August, rather than July, will be getting more, the IRS said.

Instead of spreading the monthly payments out over six months, they will be spread over five months. That means a full child tax credit of $3,600 is equal to monthly payments of $360 from August to December. The full credit of $3,000 is equal to monthly payments of $300 from August to December.

Parents with an ITIN will get 2 payments in August

The IRS also said that an issue involving parents who have an Individual Taxpayer Identification Number (ITIN) not getting their July payments has been resolved. The batch of payments sent on August 13 will include part of the July payment and the remainder will be sent in another payment in late August.

Here's when the IRS will distribute the rest of this year's payments:

• September 15
• October 15
• November 15
• December 15