Bi-Vocational Pastor Taxes: How to Pay $0 on Your Church Income

Do you work a full-time job AND lead a church? You're a bi-vocational pastor — and you are the most underserved person in the entire tax world. The big consulting firms won't help you (there's no money in it), your church can't afford to advise you, and nobody tells you how to handle taxes on that $1,000–$3,000 a month the church pays you. In this video, pastoral tax specialist Scott Larsen, CPA, author of The Tax Man Cometh, breaks down Chapter 6: The Bi-Vocational Pastor — You Are Unique and Uniquely Underserved. The headline: structured correctly, most bi-vocational pastors can pay little to NO income tax on their ministerial income. Scott covers the order of operations (expense reimbursements and housing allowance first, then a ministry 403(b), then salary), why contributing to your church's 403(b) can beat the 401(k) at your secular job, the Social Security opt-out question — you're already paying in through your regular job — and the "giving trap": church planters who donate MORE to their church than the church pays them, then pay tax on the salary anyway. Whether you're a church planter, a freelancer with a side ministry, or a pastor of a small church working a second job, this chapter is for you. ⏱️ CHAPTERS 0:00 – Pastors Deserve a Break: Scott's Take 0:13 – Chapter 6: The Bi-Vocational Pastor (Side Jobs & Church Pay) 0:40 – What Is a Bi-Vocational Pastor? 1:00 – $1,000–$3,000 a Month From the Church — and No One to Help 1:35 – Structured Right, Your Church Pay Can Be Income-Tax-Free 2:00 – Order of Operations: Reimbursements, Housing Allowance, 403(b) 2:20 – Skip the 401(k)? Why the Ministry 403(b) Wins 2:40 – The Opt-Out Question: You're Already in Social Security 3:20 – Scott's Take: The Housing Allowance Should Be Tax-Free, Period 4:00 – Action Steps for the Bi-Vocational Pastor 4:40 – The Giving Trap: Donating More Than the Church Pays You 5:20 – Putting It Together: 403(b), Expenses, Mileage, Housing 5:45 – Save Thousands Every Year — TaxScott.com 📞 FREE 20-MINUTE TAX TRIAGE — Call the office at 262-955-1669 and ask for Crystal to see if we're a good fit to save you money on your taxes. 📅 Or book an appointment online: https://book.taxscott.com/widget/book... 📗 GET THE BOOK — The Tax Man Cometh . . . Pastors Are You Ready? Website: https://taxmancomethbook.com Amazon: https://a.co/d/5ri8eB1 Apple Books: https://books.apple.com/us/book/the-t... Barnes & Noble: https://www.barnesandnoble.com/w/the-... 🌐 Website: https://www.taxscott.com 📩 Email: [email protected] 📞 Office: 262-955-1669 ▶️ WATCH THE SERIES Chapter 1 — Do Pastors Pay Less in Taxes? 400 Pastors Got This Wrong: [link to Chapter 1 video] Chapter 2 — The 4 Hidden Tax Traps Costing Pastors Thousands: [link to Chapter 2 video] Chapter 3 — How to Structure a Pastor's Salary Package & Save Thousands: [link to Chapter 3 video] Chapter 5 — Pastor Retirement Plan: $93,000 a Year — $0 in Taxes: [link to Chapter 5 video] 🔔 SUBSCRIBE — the chapter-by-chapter series continues, plus practical tax tips for pastors, ministers, missionaries, and church planters all year long. Are you bi-vocational? Tell us what you do outside the church in the comments — Scott reads them. Disclaimer: This video is for educational purposes only and is not legal or tax advice. Consult a qualified professional about your specific situation. #BivocationalPastor #PastorTaxes #ChurchPlanting #ClergyTaxes #HousingAllowance