HOA Year-End Checklist: 1099s, 1120-H and Records for the CPA

HOA Money · Year-End

HOA year-end comes down to three things: send 1099s to qualifying vendors by January 31, file Form 1120-H by the 15th day of the fourth month after year end (April 15 for most), and close the books cleanly so the tax preparer has what they need. This checklist walks Colorado boards through it month by month.

The checklist

December

• Confirm every bank account is reconciled through November.
• Collect W-9s from any vendor you’ll need to send a 1099.
• Make the last reserve transfer of the year.
• Confirm next year’s budget was adopted and the summary sent to owners.

January

• Reconcile December for every account.
• Record unpaid bills and prepaid dues at year end.
• Send 1099s to vendors and the IRS by January 31 (the next business day if it falls on a weekend).
• Pull the final delinquency report.

February to March

• Close the year and lock the books.
• Give the board the year-end package: balance sheet, budget vs actual and reserve balances.
• Send the tax preparer what they need (list below).

By April 15

• File Form 1120-H for a calendar-year association, or file an extension.
• Make the annual disclosure to owners required by CCIOA (C.R.S. 38-33.3-209.4).

1099s: what changed for 2026

The change came from the 2025 federal tax law. Attorney payments and some other categories follow different rules, so check before skipping a form. See the IRS 1099-NEC page.

Form 1120-H basics

• At least 60% of gross income must be exempt function income, like dues and assessments.
• At least 90% of spending must go to managing and maintaining association property.
• Taxable income, like interest, is taxed at a flat 30% after a $100 deduction.
• The association elects to file 1120-H each year. See the IRS Form 1120-H page.

More detail on our Colorado HOA tax returns page.

What to send the tax preparer

• Year-end balance sheet and income statement
• December bank and reserve statements
• Interest income statements (1099-INT) from each bank
• Last year’s tax return
• The association’s EIN and fiscal year end
• Any income besides dues: rentals of common areas, laundry, cell tower leases

Our pricing

• 1120-H: $400 up to 50 units, $500 for 51 to 150 units, $600 for 151 units and up
• 1099s: $15 each

See our HOA accounting services and pricing.

Common year-end mistakes

• Missing W-9s, so 1099s go out late
• Prepaid dues counted as income in the wrong year
• Interest on reserve accounts left off the tax return
• Last year’s return not on file for the new preparer
• Board signers or officers out of date with the bank

Mountain-town notes

Many mountain associations have income beyond dues, like renting a common-area room, parking fees, laundry machines or a cell tower lease. That income is generally not exempt function income on Form 1120-H, so track it on its own line all year. It makes the tax return faster and more accurate.

Associations with a fiscal year other than the calendar year follow the same steps, shifted to their own year end.

Who files what

• The association files Form 1120-H (or Form 1120) under its own EIN.
• The association issues 1099s to qualifying vendors.
• Owners don’t report their dues on the association’s return.

If your association missed a past year’s return, talk to a tax preparer about catching up. Penalties and interest can apply, so it’s better to fix it sooner than later.

Key takeaways

• W-9s in December make January 1099s easy.
• For 2026 payments, the 1099-NEC threshold is $2,000.
• Form 1120-H is due April 15 for calendar-year associations.
• Track non-dues income on its own line all year.
• Keep last year’s return on file for your preparer.

This is accounting education, not legal or tax advice.

FAQ

When is an HOA’s Form 1120-H due?

By the 15th day of the 4th month after the tax year ends. For a calendar-year association, that’s April 15.

Does an HOA have to issue 1099s?

Yes, to vendors paid for services who meet the threshold, such as unincorporated contractors. For payments made in 2026, the 1099-NEC threshold is $2,000, up from $600. Payments to attorneys follow their own rules.

What does it cost to have Powder prepare our 1120-H?

$400 for associations up to 50 units, $500 for 51 to 150 units and $600 for 151 units and up. 1099s are $15 each.

Does an HOA have to pay income tax?

On Form 1120-H, dues and assessments are generally exempt function income. Tax is usually only owed on other income, like interest, at a flat 30% rate after a $100 deduction.

Sources

• IRS: About Form 1120-H
• IRS: About Form 1099-NEC
• C.R.S. 38-33.3-209.4 (public disclosures)