HOA Taxes

Tax season is always a stressful time for everyone — and homeowners associations are no different. Simplify your tax preparations and save yourself the headaches with help from Clark Simson Miller.

Do HOAs File Tax Returns?

Many homeowners associations skip filing their tax returns based on the incorrect notion that, as nonprofit corporations, they are not required to do so. And while most HOAs are set up as nonprofits, that does not necessarily mean they are exempt from paying taxes and filing their returns. In general, homeowners associations do need to file tax returns, even if their tax due amounts to zero.

Federal HOA Taxes

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For homeowners associations, there are typically two federal tax forms available: Form 1120 and Form 1120-H. But, what is the difference?

Using Form 1120, all of an HOA’s net income becomes taxable. This is the form commonly used by corporations. It also requires more work since it is a very detailed form. However, the advantage of using this form is that it offers a lower tax rate for the first $50,000 of an HOA’s net income.

Form 1120-H, on the other hand, is a federal tax form specifically designed for homeowners associations. It gets rid of some of the prerequisites of Form 1120 and is, therefore, much less elaborate. Though, to use this form, an HOA must meet certain qualifications.

State HOA Taxes

Unlike federal tax returns, state tax returns can vary dramatically. Each state uses a different form and may have its own set of requirements. Meanwhile, some states don’t collect income tax at all, thus eliminating the need to file state tax returns.

Why Get Professional HOA Tax Help

Far too many HOAs face hardships come tax season. Given the complexity of HOA tax preparation, this is not surprising — but it doesn’t mean it’s unavoidable either. With the help of tax professionals, preparing and filing your federal and state tax returns will be easy as 1, 2, 3.


Clark Simson Miller can help you with the following:


  • Assess qualifications. Don’t know if your HOA is qualified to file Form 1120-H? Finding it hard to figure out what your taxable income is? CSM is on it!
  • File all necessary forms. Trouble figuring out how to fill out your tax forms? Worry not, for CSM can take care of that for you. We will be the one to complete and file your federal and state returns as well as any other supporting documents such as schedules and extensions.
  • Never miss a deadline. Not filing your returns on time can result in some hefty penalties. Eliminate this problem with our help.
  • No mistakes. Errors can trigger an audit from the IRS and end up costing your HOA a lot of money. Professional assistance, though, can ensure your forms are completed and filed correctly.
  • Year-round advice. Tax professionals from CSM can provide you with valuable tax advice all throughout the year to help you save money come tax season.
  • Review past tax returns. Afraid your previous returns might have missed deductions? Don’t worry. We can take a look at your past returns and amend them for you.

Take the pressure off. You can say goodbye to all the headaches, frustration, and confusion you feel during tax preparation. CSM can take it from here.

A Capable and Reliable Partner

With years of experience helping HOAs of all sizes, Clark Simson Miller is the obvious choice to help you with tax preparation. Our highly qualified tax professionals are always ready to give you expert advice and make tax season much easier for you.

Efficiency, competency, and transparency — these are what you get when you partner with Clark Simson Miller. Call us today at 865.315.7505 to learn more or contact us online to request a proposal for help with HOA taxes.

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