7 Bills You Don’t Have to Pay If You’re Poor

Stop wasting your money on bills you don’t have to pay! There are government programs that can wipe out your phone bill, slash your internet bill and even cut your car insurance! 

I’ve spent the last 10 years researching low income programs and helping millions of people around the United States save money and get free stuff. Everything I’m about to tell you is backed by official federal or state programs — and you can verify every detail directly with the agencies that run them.

Bills You Don’t Have to Pay if You’re Poor

Let’s take a quick look at the bills that you may be able to eliminate or at least drastically reduce.

Phone Bills. Some cell phone providers offer free plans for low income customers through the Lifeline program. Depending on which phone plan you choose, this plan may be able to completely eliminate your cell phone bill!

• Who Qualifies: Households with income at or below 135% of Federal Poverty Guidelines or those already enrolled in SNAP, Medicaid, SSI, or TANF.
• The Catch: Limited to one discount per household; you must recertify your eligibility every year to keep the service.
• Next Step: Compare plans here.

Medical Bills. If you are low income, you may qualify for programs like Medicaid and CHIP that can completely cover most of your medical expenses. These programs can pay for doctor’s visits, hospital stays, labs, x-rays, dental/vision for children and even transportation to and from your medical appointments. Coverage may even be retroactive.

• Who Qualifies: Low-income individuals, families with children, and pregnant women. Limits vary by state, but CHIP specifically covers children in families that earn too much for Medicaid but not enough for private insurance.
• The Catch: Not all doctors accept Medicaid; you may need to stay within a specific network of providers.
• Next Step: Apply directly through your state Medicaid agency or Healthcare.gov.

Child Care: There are government programs that may be able to assist you with your monthly child care or daycare costs. These include SNAP E&T programs, as well as programs funded by the Child Care and Development Fund. The details vary by state, but some families may have $0 copays.

• Who Qualifies: Families enrolled in SNAP E&T or those meeting state-specific income limits under the Child Care and Development Fund.
• The Catch: Many states have long waiting lists for these vouchers, so it’s best to apply as early as possible.
• Next Step: Find your free child care options here.

School Meals. Students from low income families may qualify for free or reduced price school lunches and breakfasts through the National School Lunch Program (NSLP) and School Breakfast Programs.

• Who Qualifies: Students in households with income at or below 130% of the poverty level (for free meals) or 185% (for reduced-price).
• The Catch: You usually have to submit a new application at the start of every school year unless your school participates in “Community Eligibility.”
• Next Step: Contact your child’s school or find out more here.

Student Loans. Low income borrowers with federal student loans may qualify for Income-Driven Repayment (IDR) plans that reduce payments based on income and family size. In some cases, payments can currently be as low as $0.

• Who Qualifies: Federal student loan borrowers. New “Repayment Assistance Plans” (RAP) beginning in 2026 can lower payments to $10 for those earning under certain thresholds.
• The Catch: Student loan rules are changing, and new programs like RAP are expected to adjust how payments are calculated in the coming months. These benefits only apply to federal loans, not private ones.
• Next Step: Get the details from the official Student Aid website or call the Student Relief Helpline by our sponsor, CareConnect USA, at 1-888-201-0431.

Tax Filing Fees. There are several programs that can help you file your taxes for free if you meet the income limits. You can use these programs to either file your own taxes with preparation software or get expert advice from a volunteer.

• Who Qualifies: Anyone with an Adjusted Gross Income (AGI) of $89,000 or less for the 2025 tax year.
• The Catch: Some “Free File” partners charge for state returns even if the federal return is free. Look for the “Free State Filing” label.
• Next Step: Visit IRS.gov/FreeFile to browse trusted software partners, or contact your local VITA or TCE volunteers.

Income Taxes. Many low income workers don’t owe federal income taxes — and some even receive money back. Programs like the Earned Income Tax Credit (EITC) and Child Tax Credit can reduce your tax bill to $0 and may generate a refund if you qualify. Seniors may qualify for the new $6,000 senior deduction, too. Eligibility depends on your income, filing status, and other factors.

• Who Qualifies: Low-to-moderate-income workers (EITC) and parents (Child Tax Credit). Seniors 65+ now qualify for a new $6,000 deduction ($12,000 for couples) if their income is below $75,000 (Single) or $150,000 (Joint).
• The Catch: You must file a tax return to claim these credits/deductions, even if you don’t owe any money.
• Next Step: Contact a VITA or TCE volunteer with questions.

Other Bills You May Be Able to Reduce

Some people who are low income may also qualify to eliminate or reduce other bills, depending on their individual circumstances.

Internet Service: Many internet service providers offer discounted internet plans for low income customers. These plans could drop your internet bill to just $10–$20 per month, depending on which plan you choose. Some providers also participate in the federal Lifeline program.

• Who Qualifies: Low-income households often eligible for Lifeline or specific provider-led discount programs (like Internet Essentials).
• The Catch: Speeds may be lower on these discounted plans, which might be a struggle for large households or gamers.
• Next Step: See the internet discount list.

Heating Utilities: You may be able to get help with your heating or cooling bills through the LIHEAP program. This bill won’t pay your entire bill for the whole year, but it can help. The amount you receive will depend on your household size, location, and other rules. You may also be able to get weatherization support as well.

• Who Qualifies: Homeowners or renters who meet state income requirements (usually 150% of poverty level or 60% of state median income).
• The Catch: This is a first-come, first-served program. Once the year’s federal funding is gone, applications close. Next Step: Get the details on LIHEAP.

Car Insurance: Did you know that some states offer low cost car insurance plans for low income drivers? It’s true! In California, the premiums can be as low as $20 per month in some cases. This program is currently operational in just a few states and each one handles it differently.

• Who Qualifies: The requirements vary by state.
• The Catch: Not every state offers these plans. When available, these policies typically provide “Liability Only” at state minimums; they do not cover damage to your own car (Collision/Comprehensive).
• Next Step: See if your state offers low income auto insurance.

Car Registration: In some states, low income veterans may be able to qualify for free or reduced-price vehicle registration! In fact, in Washington State, veterans who are 100% disabled can receive free lifetime vehicle registration. We’ve found similar offers in other states, too.

• Who Qualifies: Varies by state; typically veterans with a certain level of disability.
• The Catch: Often restricted to one vehicle per household and may not cover “personalized” or “specialty” plate fees.
• Next Step: See if your state offers this.

Property Taxes: Low income veterans, seniors and others may qualify to have their property taxes reduced, deferred or eliminated depending on local county rules. Check with your county assessor; some states even offer retroactive refunds for past overpayments.

• Who Qualifies: Seniors, veterans, and people with disabilities. Many states offer “Homestead Exemptions” or tax deferrals.
• The Catch: You often have to proactively apply for these exemptions with your local county; they aren’t always applied automatically.
• Next Step: Contact your local County Assessor’s office to ask about “Property Tax Relief.”

Relief Recap

The programs we’ve reviewed today could save you thousands of dollars every year! This is money that you can use to pay other bills that are breaking your budget, like rent or car payments. It only takes a few steps to sign up for these programs and they could make a big difference to your overall financial wellness, so start now!