What Bills and Taxes to Pay First When Money’s Tight

How pros triage bills when cash is tight

Cash timing gets messy in Q4. Holiday spend inches up, payroll calendars go goofy, and one off-week can snowball. So what do the pros actually do first? Short answer: we rank bills by two things, how fast the pain compounds and how hard the consequences hit your life and credit. It’s unglamorous, but it keeps the lights on, your job secure, and the IRS off your back. I’ve sat with families, founders, and yes, a couple very stressed surgeons. The triage order is the same every time.

Why consequences first? Because some misses trigger immediate life disruption, eviction, shutoffs, repossession, wage garnishment. And why compounding second? Because some debts stack fees and interest at rates that get out of hand quickly. Miss a month and it’s annoying; miss three and it’s a crater.

Rule of thumb: Pay what protects your income engine and prevents hard stops, then blunt the highest compounding costs while keeping credit intact with minimums.

1. Housing (rent/mortgage), Non-payment risks eviction or foreclosure. An eviction isn’t just a headache; it can block future rentals and destabilize everything else. If something has to be perfect this month, it’s this.
2. Utilities and internet (Power, heat, water, and internet keep work and life going. Shutoffs can happen faster than you think depending on your state and the season, and reconnection fees pile on.
3. Phone ) If your employer, clients, or kids can’t reach you, income and safety suffer. Also, two-factor authentication for banking and payroll depends on it.
4. Transportation to work (Car payment, gas, transit pass, basic maintenance. Miss too long and repossession risk rises; once towed, the fees multiply. Losing the car can nuke your earning power.
5. Insurance premiums ) Auto, health, renters/home, and disability. A lapsed auto policy can mean license issues and giant liability; a missed health premium can lock you out of coverage until reinstated. Protect the downside.
6. Minimums on credit cards and personal loans, Keep accounts current while you stabilize cash flow. Industry penalty APRs routinely run around 29.99%+ in 2025 when triggered by serious delinquency, and late fees plus interest snowball. Make the minimums to avoid the status change.
7. Taxes (urgent if you’re behind), The IRS failure-to-file penalty is 5% per month of unpaid tax up to 25%, and failure-to-pay is 0.5% per month (can drop to 0.25% with an installment agreement). Interest accrues at the federal short‑term rate + 3%, compounded daily (IRS rules in effect in 2025). Missed the Oct 15, 2025 extension deadline? File now to stop the 5%/month clock. Next estimated tax deadline is Jan 15, 2026.
8. Everything else (subscriptions, nice-to-haves), Pause, cancel, or negotiate. You’ll be shocked how many “essentials” are optional for 30 days.

Quick sanity check: could a missed bill take away your home, your wheels, your ability to work, or your clean credit report? If yes, it’s top tier. Could it quietly rack up fees or a penalty APR that eats your paycheck? That’s next. Credit cards are a good example: pay the minimum to stay current, then throw extra at the highest APR balance once the fires are out.

Two fast moves today: 1) Make a 30-day plan with dates and amounts, no more “I’ll get to it.” 2) Automate the non-negotiables (items 1-5 above) for the day after each paycheck hits. I’ve literally set autopays for clients at 5:03 pm on payday to avoid mid-day overdrafts. Not elegant, but it works.

One last thing, if you’re juggling, call your creditors early. Utilities and lenders still offer payment plans and hardship options in 2025. A quick call can turn a shutoff into a split-bill arrangement, and for taxes, an IRS Online Payment Agreement can cut the monthly penalty rate in half. Boring? Yep. Effective? Every single time.

Keep your life running: housing, lights, wheels, and insurance

This bucket is the oxygen mask. If you can’t sleep there, keep the lights and heat on, get to work, or answer the phone for MFA codes, the rest of your plan kinda doesn’t matter. And yes, that means rent or mortgage and essential utilities move to the very front of the line, before subscriptions, before extra debt paydown, before anything that isn’t survival or income protection.

Start here, every month:

• Rent/Mortgage, Non-negotiable. Eviction and foreclosure timelines vary, but the stress compounds fast. The scale of the squeeze is real: Harvard’s Joint Center for Housing Studies reported that 22.4 million renter households were cost-burdened in 2022 (spending 30%+ of income on housing), roughly half of all renters. It hasn’t gotten magically easier in 2025, even with some cooling rents in a few Sun Belt markets.
• Essential utilities (power, heat, water), Pay to avoid shutoff notices. With winter landing soon, this matters more. If you’re behind, call early. Many utilities still run formal payment plans and arrearage programs. The federal LIHEAP program helped about 5-6 million households in FY2023 with heating, cooling, and crisis assistance (HHS data), so ask your utility or state energy office about eligibility; approvals can be quick when temps drop.
• Auto insurance and car payment, A lapse can trigger registration suspensions in several states, and repos still happen faster than people expect. Losing a car kills your commute and sometimes your job. Keep both current. If the payment is choking cash flow, ask your lender about deferrals or a term extension; not perfect, but it can buy time. And shop the policy, auto insurance jumped a lot last year and earlier this year, and in some states you’ll still find double-digit year-over-year quotes. It’s annoying, I know. I re-shopped mine this summer and saved a chunky amount just by raising the deductible and removing fluff.
• Phone service, Sounds small. It isn’t. You need it for work shifts, two-factor logins, banking, and job apps. Pew Research reported in 2023 that 90% of U.S. adults own a smartphone, which is basically the modern wallet-plus-ID. Keep this on, period.
• Prescription meds & basic groceries, Budget, substitute store brands, use generics and discount programs, but don’t skip essentials. KFF found in 2022 that 29% of U.S. adults reported not taking meds as prescribed due to cost. That’s a bad spiral, missed meds can lead to bigger medical bills and lost work. On food, USDA ERS projects food-at-home prices to rise modestly in 2025 (around the low single digits), so meal planning and a boring shopping list still pays. Rice, beans, eggs, frozen veg, unsexy, but it works.

If cash is short this month (and in Q4 it often is with heating bills and holiday noise):

1. Call landlords and utilities early, like before the due date. Payment plans are way easier before a late hits the account. I’ve had clients get a 50/50 split (half now, half on next paycheck) just by calling respectfully and offering a specific date.
2. Ask for formal hardship options, utilities can spread balances over 6-12 months; some landlords will waive late fees if you pre-commit to dates in writing. Get names, notes, and confirmation emails.
3. Shop your car insurance, same coverages, higher deductible; or usage-based temporarily if your commute shortened. But keep liability limits reasonable. Underinsuring to save $15 this month ain’t worth a $15,000 problem after a fender-bender.
4. Trim data-heavy phone plans, drop to a lower tier or switch to MVNOs. Keep the number and the bill paid; that’s the target.

There’s gray area, sure. If your credit card minimum is screaming at you, pay it, but not before roof, heat, wheels, and phone. Over-explaining the simple thing: income enablers come first because without them the math breaks everywhere else. That’s it. Keep the foundation solid, then we can get fancy.

The government doesn’t wait: taxes and court-ordered payments

These have legal teeth. Not theoretical teeth, real, bite-you-in-the-paycheck teeth. If cash is tight, handle taxes and court-ordered stuff right after core living expenses (roof, heat, wheels, phone). Not because they’re morally superior. Because the penalties escalate and the enforcement tools are sharp.

On federal taxes, two clocks start when you miss deadlines, and they’re not friendly. Under Internal Revenue Code §6651, the failure-to-file penalty is generally 5% of the unpaid tax per month (or part of a month), capped at 25%. The failure-to-pay penalty is 0.5% per month. Those run together, and the math stacks quickly. Filing late is the expensive mistake; not paying in full right away is cheaper than not filing at all.

There’s also interest. The IRS charges interest on unpaid federal taxes tied to the federal short-term rate, and it adjusts quarterly (as of 2025). Rates have stayed elevated this year alongside higher risk-free yields, which means carrying a tax balance is meaningfully more expensive than it was a few years ago. I know, boring detail, but it matters: interest is compounding while you sleep.

Estimated taxes? If you’re self-employed or have variable income, don’t wing it. The Q4 2025 estimated tax payment is due January 15, 2026. We’re in Q4 now, so budget for it now rather than scrambling post-holidays. Missed estimates can trigger underpayment penalties even if you eventually square up in April.

State tax agencies, child support, and alimony orders are equally serious. Ignore them long enough and you can see wage garnishment, bank levies, or liens. Quick real-world point: states move faster than banks do on late credit cards. They have different tools and, frankly, better collection authority.

Simple rule of thumb: file on time, pay what you can, and set up a plan. Skipping the filing is the costliest mistake.

If you can’t pay in full:

• File the return on time, even if it’s a $0 payment. That stops the 5% per month failure-to-file hit.
• Pay something, even $50 or $100. It reduces interest and the 0.5% failure-to-pay.
• Apply for an IRS payment plan, short-term (up to 180 days) or long-term monthly plans. It’s administrative, not adversarial. You’ll need your numbers handy.
• Respond to notices. Silence is what triggers liens, levies, or a wage garnishment.

And yes, priorities can get messy. Say your car payment is due the same week you receive a state tax notice. Keep the car paid (it’s an income enabler), and file and send a token payment to the tax agency with a written plan request. I’ve sat with clients who waited “just one more paycheck” to file, three months later the penalty meter had eaten their emergency fund. Not scare tactics, just arithmetic.

One last nuance and I’ll stop over-complicating this: if you owe for 2025 and you’re also behind on 2024 state taxes, call the state and set a documented plan before they garnish. Garnishment orders hit your take-home pay before you see it, which can then cause you to miss, say, insurance, and that spirals into bigger costs. Handle the government stuff right after the essentials, and you keep the rest of the budget from cracking.

Secure the collateral: mortgages, auto loans, and other secured debts

After you’ve covered essentials and answered any government letters, keep the assets that back your loans out of the danger zone. Secured creditors don’t send long love letters, they take the thing. That’s your home, your car, or the equipment your business needs to run.

• Stay current on the mortgage. Late mortgage payments punch three ways: a late fee (commonly ~4-5% of the overdue principal-and-interest), a 30-day late mark on your credit if you cross a full cycle late, and, if it drags on, the foreclosure clock. Under CFPB servicing rules (12 CFR 1024.41), a servicer generally can’t start foreclosure until you’re more than 120 days delinquent. That 120-day window is real, but it evaporates faster than you think when cash is tight. For context, the Mortgage Bankers Association reported low overall delinquency rates last year (2024), around the mid‑3% range, which doesn’t help you pay, but it does mean servicers aren’t swamped, and good communication helps.
• Keep auto loans current, repos hit fast. Credit bureaus usually report a missed loan at the 30‑day past‑due mark, but repossession can happen under the contract as soon as you’re in default (no magic day-count like mortgages). Some lenders move quickly, and once a tow truck shows, you’re paying repo, transport, and storage fees to get the car back. Miss that window, and the deficiency after auction follows you. In plain English: if the car is how you get to work, it’s mission‑critical expense #1B right behind housing and insurance.
• Business owners: protect loan‑tied equipment and receivables. If you pledged equipment, inventory, or A/R, your lender likely filed a UCC‑1. Default lets them seize or sweep collateral (I’ve seen cash sweep clauses trigger on a missed covenant, was it late 2024? I’m blanking on the exact quarter, but the borrower lost a week of operating cash overnight). If a delivery truck or CNC machine is your revenue engine, that note needs to be on time.
• Hardship deferrals: ask, but read the fine print. Payment deferral can help if it doesn’t create a balloon you can’t handle later. Some mortgage and auto deferrals tack skipped months to the end; others require a lump sum at deferral end. Confirm, in writing, how interest accrues and whether a lump‑sum “catch‑up” is required. And please ask if a deferral resets any promo rate or triggers retroactive interest (store cards do this; a few auto promos have landmines too).
• If you’re truly stuck: prioritize the asset you need to live and work. The car that gets you to your shift beats the RV, the boat, or the extra motorcycle. Toys can go. And yes, it stings.

Rule of thumb I use with clients: if losing it would cut your income or force you into higher daily costs (like rideshares), that secured payment sits near the top of the list.

Small tactics that help: automate the mortgage for the day after your paycheck hits, ask the auto lender about due‑date changes (many allow one move per year), and keep proof of insurance current, lenders can slap on “force‑placed” coverage that’s pricey. If cash is thin this year with rates still elevated and budgets tight, tighten here first because once a secured lender moves, reversing the damage gets real expensive, real fast.

Credit survival mode: minimums first, then kill the highest-cost balances

Once the roof, lights, taxes, and the secured stuff are stable, the next move is simple, even if it feels boring. Keep every card and loan current with at least the minimum. That single habit blocks late fees, stops penalty APRs from kicking in, and protects your score while you work down balances. With rates still elevated this year and holiday budgets about to get stretchy, this is the defensive line you can’t skip.

Why minimums matter right now: missed payments trigger a double hit, fees plus higher rates. Many issuers are still charging around $30-$41 for late fees as the industry waits on litigation over the CFPB’s proposed $8 cap from 2024. And if you hit 60 days past due, issuers can apply a penalty APR (often up to ~29.99%) under CARD Act rules. At today’s card rates, that hurts fast. For context, Federal Reserve data show the average credit card rate on accounts assessed interest was 22.8% in Q2 2024, so letting a balance slip into penalty territory is like pouring gasoline on a campfire.

Okay, after the minimums are automated, shift to offense. You’ve got two mainstream playbooks:

• Debt avalanche: throw every extra dollar at the balance with the highest APR first. Mathematically optimal. With APRs where they are this year, this usually wins big.
• Debt snowball: pay off the smallest balance first for a quick win, then roll that payment to the next. Behaviorally smart if you need momentum, I’ve watched clients stick with the plan longer when they get early wins.

I prefer the avalanche in 2025 because the spread between cheap and expensive debt is wide. But, if motivation is the limiter, take the snowball for 60-90 days, get two quick zeros, then pivot to avalanche. Hybrid works. And yes, I just contradicted myself a bit; real life isn’t a spreadsheet.

Protect your score while you do this. FICO has long said payment history is the largest factor in its models, 35% in classic versions, a methodology that predates 2025. One late can sit on reports for up to seven years, and multiple lates can also jack up your APRs on future loans. If nothing else, minimums buy you time.

Watch the fine print, and I mean every line on those promo offers and store cards:

• Promotional APRs: know the end date. Some “deferred interest” deals charge all the back interest if you don’t pay it off by the promo end. Put a calendar alert 30 days before the cliff.
• Penalty APR triggers: your card agreement lists them, 60 days late is the big one. Also watch returned payments; a bounced ACH can spark fees and account reviews.

BNPL is everywhere this holiday season. Treat each plan like a bill, because it is. The CFPB reported 7.8% of BNPL loans incurred a late fee in 2022, down from 10.5% in 2021, which still isn’t great if you’re juggling multiple pay-in-4s during gift season. I tell people to put BNPL installments on a separate calendar from credit card due dates, prevents the “whoops” that turns a free plan into an expensive one.

One personal note: I’ve seen more people this year with five+ micro-installments, all due the same Friday as rent. That’s exactly how a budget with room on paper blows up in practice. If cash flow is tight, stagger due dates, most providers let you move one per cycle with a quick chat.

Finally, quick sanity check I forgot to mention earlier, if a collector is circling on a debt with a high chance of suit, it can jump the queue even if the APR isn’t your worst. Legal exposure changes the math. Otherwise, keep the minimums current, pick your payoff method, and stick to it for 90 days. Boring wins here.

Medical bills and collectors: what actually hurts your credit now

Quick reality check: medical debt behaves differently than missing a card payment, and the scoring systems finally caught up a bit. Equifax, Experian, and TransUnion changed policy starting in 2022 and into 2023: paid medical collections are removed from credit reports, the reporting window before an unpaid medical bill can show up was extended to one year, and as of 2023 medical collections under $500 are suppressed. That means a $312 lab bill in collections won’t drag your score the way it used to. This is good, not perfect. Unpaid larger balances can still land in collections, still trigger lawsuits, and those are what actually bite, on your credit, and potentially in court.

To anchor this in facts: the CFPB reported in 2022 that medical collections made up roughly 58% of all collections on credit reports at the time. KFF found in 2022 that about 100 million people in the U.S. had some health care debt. The policy changes since then have thinned out the small-dollar noise on reports, but they didn’t erase the real problem: bigger debts still move to collectors and, if ignored, to lawyers. In Q4 this year, I’m seeing more insurance denials and slower EOB processing, year-end deductible quirks, and that delay can push bills past 90 or 120 days, which is where trouble starts if you’re not proactively talking to the provider.

Here’s how I triage this in practice, and yes I’m thinking this through as I type because everyone’s stack is a little different:

• Start with essentials (housing, utilities, food, transport). Then prioritize debts with immediate legal risk, active lawsuit threats, recent summons, or collectors hinting at litigation. A $2,800 ER balance that just got a pre-legal letter beats a $180 collections item that’s under $500 and not even reporting.
• Negotiate early with the provider. Ask for the itemized bill and the financial assistance policy. Many hospital systems (especially non-profits under IRS 501(r)) have sliding-scale charity care or interest-free plans if you apply. I’ve watched $6,400 surgical bills drop to $1,900 after financial assistance, no magic, just paperwork and persistence.
• Validate any collection. If a collector calls, say you prefer written communication and request debt validation in writing under the FDCPA. Do it within 30 days of first notice. Keep a simple log: dates, names, what was said. Paper beats memory, and it protects you if something goes sideways.
• Check the $500 rule and paid status. If it’s medical, under $500, or paid, ask the bureaus to confirm it’s suppressed/removed per their 2022-2023 policy changes. Sometimes the data lags. A short, boring dispute works.
• Time your cash. End of year is chaotic, deductibles reset in January, holiday cash flow gets tight, so set a small weekly amount toward any bill that could escalate legally, then circle back to the low-impact medical collections after you’ve contained the legal risk.

One more thing people forget: coding errors and insurer misapplied adjustments are rampant. An itemized bill will list CPT codes and units; you don’t have to be an expert, just compare it to your Explanation of Benefits (EOB). If the EOB says you owe $0 but the provider statement shows $487, that’s a mismatch, call the provider’s billing office with the EOB in hand. I know, it’s annoying phone-tree roulette, but it’s cheaper than paying a wrong bill, and it ain’t rare.

What actually hits your score today? Not the small, paid medical stuff anymore. It’s the bigger unpaid balances that age into collections and any legal action that follows. If this sounds a bit complex, it is, but the playbook is straightforward: document, negotiate, validate, and prioritize by legal risk after your essentials. Keep emotion out of it where you can. And if you get a lawsuit notice (actual court papers, not a scary letter), respond by the deadline even if you plan to settle. Silence is how defaults happen, and defaults are a mess to unwind.

Bottom line: The bureaus pulled some fangs in 2023, paid medical collections off the reports, sub-$500 suppressed, but the big balances can still bite. Talk early, get it in writing, and keep your cash aimed at what can sue you first.

Make it automatic, or pay the price later

This is the part where “set it and forget it” isn’t lazy, it’s risk management. We’re in Q4 2025, holiday promos are loud, heating bills are about to kick up, and lenders haven’t gotten kinder. You want a boring system that pays the essentials no matter what your week looks like. Because the alternative gets expensive fast.

Autopay, non‑negotiable list (minimums are fine, speed is the point):

• Rent/Mortgage: schedule 2-3 business days before due. Many landlords hit late fees after day 5.
• Utilities (electric, gas, water): keep the lights and heat on through December and January. A shutoff fee + reconnection can easily stack to $50-$150 depending on the utility.
• Auto insurance: no lapses. BLS reported motor-vehicle insurance costs were up over 20% year over year at points in late 2024, and resets this year have not been friendly. A lapse can push you into even higher tiers.
• Credit cards and loans, minimums: preserve your standing. Fed data show the average APR on accounts assessed interest was about 22.8% in Q2 2024; carrying a balance at that rate snowballs. Avoid late fees and penalty APRs by paying the minimum on time, then pay extra when cash clears.
• Tax set-asides: treat your future IRS self like a bill. The IRS failure-to-file penalty is 5% per month (up to 25%), and failure-to-pay is 0.5% per month (also up to 25%). Don’t hand them optional return-on-inertia.

Create a paycheck calendar for the rest of 2025

1. List your remaining pay dates in 2025. If you’re biweekly, you’ve probably got 5-6 deposits left depending on your cycle. Mark them.
2. Slot each bill by due date and pay cycle. Rent out of the first check each month; utilities and insurance out of the second. Credit card minimums staggered to hit 5-7 days before due. Keep a two-day buffer for bank processing. I know, not exciting, but neither is a late fee.
3. Block “holiday spend” as a line item, not a surprise. If it’s not on the calendar, assume it siphons from your tax bucket, because that’s what happens.

Open a separate tax/sinking fund, today

• Nickname it “Q4 Taxes & Q1 Bills.” Every deposit skims a fixed %, even 5-15% is meaningful. Self-employed? Higher. The IRS underpayment interest is the federal short‑term rate + 3 percentage points (set quarterly). That meter runs if you’re behind.
• Use it for: 2025 Q4 estimates (January deadline), January insurance renewals, annual subscriptions, and that surprise car registration that shows up when you’re still sweeping pine needles out of the trunk.

Now, if you’re already behind, or you’re staring at a stack that makes you want to shut the laptop, breathe. The order changes, the rules don’t.

If you fall behind (do this before the due date, not after):

• Call creditors early and ask for a hardship plan. Card issuers can lower rates/waive fees for 6-12 months if you’re proactive. Utilities will set up payment plans before a shutoff notice… after, not so much.
• Prioritize by legal and life support risk: housing, utilities, transport to work, then debt minimums, then everything else.
• Document the agreement, names, dates, terms. Screenshots live longer than memories.

Quick reality check that I really wish wasn’t this blunt. If you don’t act, you’re not just “a little late.” You’re looking at shutoffs, repos, eviction filings, tax penalties, and wage garnishments. Under federal law (15 U.S.C. §1673), up to 25% of disposable earnings can be garnished in many cases. That’s not a budgeting problem, that’s a take‑home pay problem. And the credit damage can mean higher borrowing and insurance costs later. Which are… yep, way more expensive than an hour of calendar work today.

Small detour: I once missed a utility autopay because I fat‑fingered the routing number, twice. Embarrassing. The fix was simple: confirmation email + $25 buffer left in checking. Point is, the system matters more than the willpower. And right now, the system you want is boring, automatic, and a little over‑built for the next 90 days.

Bottom line: Automate the essentials, map the rest of your 2025 paychecks, skim every deposit into a tax/sinking fund, and speak up early if you’re short. The cost of inertia, interest at ~23% APR (Fed, 2024), IRS penalties (up to 25%), and potential garnishments (up to 25% of disposable pay), dwarfs the cost of getting organized today.

Frequently Asked Questions

Q: Should I worry about paying utilities before credit cards when money’s tight?

A: Yes, keep lights, heat, water, internet on first. Shutoffs can happen faster than you think, reconnection fees snowball, and losing internet can hit your job. With cards, make the minimum if you can to protect your credit, but utilities and housing come before revolving debt. If needed, call the utility for a payment arrangement; most have hardship plans in Q4.

Q: How do I decide what to pay first when rent, car, and credit cards are due the same week?

A: Rank by two things: life consequences and compounding costs. First: housing (avoid eviction/foreclosure), utilities/internet, phone, and transportation to work (avoid repossession or losing your commute). Second: protect credit by paying all card minimums before 30 days late. Third: throw any extra at the highest-APR debt. Tactics: ask your landlord for a mid-month split, set card autopay for minimums, and call the car lender for a due-date change or hardship extension.

Q: What’s the difference between skipping a credit card minimum and paying it late by a week or two?

A: Credit reporting clocks by 30-day buckets. If you miss the due date but pay at least the minimum before you’re 30 days past due, it’s usually a late fee and interest, annoying, but not a credit score hit. Cross 30 days past due and most issuers report it, which dings your score and can trigger penalty APRs. Partial payments don’t stop the 30‑day clock unless you cover at least the minimum. Set autopay for the minimum, even $25 saves headaches.

Q: Is it better to pay the IRS (estimated or back taxes) or keep current on rent and utilities if I can’t do both?

A: Keep shelter and essential services current first, rent/mortgage, utilities, phone, and the commute that keeps your income coming in. Losing housing or having a shutoff creates immediate life disruption that’s harder and more expensive to fix than IRS penalties. Then deal with the IRS quickly to cap the damage. Practical order I use with clients: 1) Pay housing and utilities on time. 2) Make minimums on cards before 30 days late to protect credit and access to credit if you need it again. 3) Contact the IRS or use their online tools. Failure-to-pay penalties are typically 0.5% per month (up to 25%), plus interest at the federal short‑term rate + 3% (compounded daily). That stings, but it’s usually less catastrophic than eviction. If you owe taxes: • If you can pay in 120 days, request a short-term plan online, no setup fee, just penalties/interest. • If you need longer, a streamlined installment agreement (commonly up to $50,000) can be set up online; direct‑debit plans have a lower setup fee than manual ones. • If you’re self‑employed and short on this year’s Q4 estimates, pay what you can, the underpayment “penalty” is interest-based. Adjust your Form W‑4 at work for the rest of the year to reduce or eliminate future underpayment. Also, don’t ignore IRS mail, respond early to avoid liens/levies. And one more timely note: the Affordable Connectivity Program ended last year, but many carriers still have low-cost plans; use them to keep your phone/internet active while you catch up with the IRS.

@article{what-bills-and-taxes-to-pay-first-when-moneys-tight,
    title   = {What Bills and Taxes to Pay First When Money’s Tight},
    author  = {Beeri Sparks},
    year    = {2025},
    journal = {Bankpointe},
    url     = {https://bankpointe.com/articles/what-bills-and-taxes-to-pay-first/}
}