1120-H Basics

If you are a member or director of an HOA visiting this website you are probably hoping to answer the most common questions we receive from homeowner associations: “Does my HOA need to file a tax return?” The answer to this questions is: YES! All Homeowners Associations must file a tax return each and every year. Save your HOA hundreds of dollars per year. Learn to file form 1120-H!

The vast majority of HOAs can file Form 1120-H. Those who most easily qualify to use form 1120-H are HOA’s that function solely to collect member dues and assessments and use these dues and assessments to manage and maintain HOA property. Many of these HOAs will also earn some interest income each year on savings or certificates of deposits – funds set aside to repair and replace HOA property.

To Take the Course 1120-H Your HOA Must Meet the Following Criteria:

Your HOA’s only income comes from:
Dues and assessments from members who own residential property in your HOA,
Interest on savings set aside for repair and replacement of HOA property (you can still take the course if your HOA has no interest income), and
The amount of interest earned, if any, is small relative to dues and assessments received from members (equal to less than 10% of dues and assessments collected).
All of your HOAs expenses/funds are used to: Manage and maintain HOA Property, Repair and Replace HOA property (such as HOA owned roads)

If this sounds like your HOA, preparing Form 1120-H is relatively simple. So simple, in fact, that we have developed this course to help HOAs like yours prepare your own Form 1120-H.

Customer Reviews

Your course gave me the confidence to file taxes for the first time in the history of our homeowner association! Deni, Colorado Springs, CO
I was very impressed and happy with the course. It was exactly what I was looking for and the presenter was excellent. Nick, Chicago, IL
This tutorial has been extremely helpful and informative. I appreciate it and am really glad I Googled for help. Kathryn, Galloway, NJ
The 1120-H course is the second course that I’ve taken and both classes have been very informative and helpful. The courses have been easy to follow along with and if I have a question they are quick to get back to me and help me understand the issue. I would highly recommend OvernightAccountant classes. George, York, PA
Your video class on this issue (HOA taxes) has given me the confidence to go forward. Desmond, Frederick, MD
I thought the course on 1120-h was excellent and have shared your website with other hoa board members. It was clear to me that Brett understood a volunteer HOA board that could not afford tax accountant guidance. Terri S, Henrico, VA
I just took over the Treasurer position in my neighborhood. As you know, it’s tax time! I knew I could do it with help! Thank you! I am now an expert on our HOA taxes! I would definitely recommend this to others! Sebreania H, Marietta, Ga
I took the course last weekend and it was excellent. I’ve also had a couple of e-mail exchanges with Brett to clarify a few things, which I really appreciated. I found the class to be very easy to understand. I do have a finance background, but I think it would be comprehensible to people who don’t. I will recommend that the next Treasurer of our HOA take the course when he/she takes over. Nancy S, Glenview, IL
I loved the 1120-H course, it was very helpful, and I would recommend it! Ruth, Kunkletown, PA
I found the course informative, and it met my needs. We have a fairly straightforward and non-complex HOA currently with few expenses and only assessments as revenue, so the course was extremely relevant, and I was able to ensure I was filling out the correct tax form and populating the appropriate fields. I have materials now that also explains why we are using the 1120H and the methodology behind it. So overall very pleased with your course materials! I would recommend it to anyone in a similar situation. Chris L, Nashville, TN
The course did meet my needs and clarified several fine points that the IRS instructions did not make clear to my brain. Joe, VT
Your video was perfect for us. It was easy to follow and understand. I was able to complete our tax return. Chakima H, Mableton, GA

Lesson Listing

Here is a list of the lessons in this course and a brief description of what you'll learn in each lesson.

Introduction
This section covers a lot of ground. It will help you determine whether your HOA will be able to use this course to assist in the preparation of Form 1120-H. It will summarize the history of HOA taxation in the U.S. and the evolution of Form 1120-H. It will provide an overview of the five-part test the IRS uses to define a Homeowners Association for tax purposes and associations that qualify to file Form 1120-H. We will also review the due dates of Form 1120-H and how to file for an extended due date if you are running short on time to complete your 1120-H.
Preparing the Form
This section will provide an overview of Form 1120-H and its six separate parts: 1) Organizational Information, 2) Exempt Information, 3) Gross (Nonexempt) Income, 4) Deductions from Nonexempt Income, 5) Tax Calculation, and 6) the Signature Section. It will also help you to properly complete part one, Organizational Information, for your 1120-H.
Preparing the Form (Continued)
This section will cover completing parts two to four of form 1120-H: 2) Exempt Information, 3) Gross (Nonexempt) Income and 4) Deductions from Nonexempt Income

Note - If your HOA paid state or federal taxes during the tax year on income earned during the previous tax year, please see our Course FAQ.
Special Situation: State and Federal Tax
This lesson will show you how to enter federal and state tax paid on nonexempt income during the tax year. This topic is also discussed in the Course FAQ.
Tax and Payments
This section wraps up the completion of your Form 1120-H by calculating any tax due with your Form 1120-H (Tax Calculation, part five). It will also discuss the Electronic Federal Tax Payment System (EFTPS) and help you how to properly complete the part six, the Signature Section of your Form 1120-H.
Mailing The Form
Now, let’s get your completed Form 1120-H mailed to the proper IRS address and remind you about possible state filings that may be required for your HOA.
Example: Completing the Form
In this video, we walk you through a typical 1120-H form.

All courses and articles are for informational purposes only and do not constitute tax advice. Taxes are complicated - do not act on course information without consulting a professional. Always refer to treasury regulation before making any tax decision. Read the full disclaimer.

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