Tax Dates to Add to Your Calendar
There’s no avoiding taxes, but knowing the various tax deadlines for your HOA can at least make the process a little easier because it prevents you from scrambling at the last minute. If you want to get ready for tax season, check out these four tax dates you must add to your calendar.
Employment Tax Returns
If your HOA has employees, such as a community manager, you need to file employment tax returns. The deadline for these tax returns is 30 days after the end of each calendar quarter. If payment is owed, when you need to make this payment depends on how much is actually owed, but it can be semi-weekly, monthly or when you file the tax returns.
Federal Income Tax Returns
Federal income tax returns are required from all HOAs. The standard deadline for the federal income tax return is March 15th, but that only applies to HOAs that run on a calendar year. For other HOAs, the return is due two and a half months after the end of the fiscal year. HOAs can file Form 1120H or 1120 (standard corporate form).
Estimated Tax Payments
If your HOA pays income taxes on nonmember income, you’ll need to pay estimated taxes each quarter. This is required if taxes are $500 or more, and failure to pay these estimated taxes each month can result in a tax penalty. The estimated tax payments are due April 15th, June 15th, September 15th and December 15th.
1099 Tax Forms
Another form all associations must file is the 1099 tax form. This form details all the payments made in the last calendar year, and it is due December 31st. Even if your HOA has a fiscal year that isn’t congruent with the calendar year, the deadline is still December 31st. Also, if your HOA pays $600 or more during that calendar year to a non-corporate provider (attorney, manager, contractor, etc.), you must send a 1099-MISC to the provider.
Taxes cause a lot of headaches and can be a big nuisance, but as long as you know the important deadlines for various taxes in advance, you can stay on track, which can take away some of the stress.
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