Tax Credit for Homeowner Association Dues
- Homeowner association dues are charged by the homeowner's association of which a person is a member. Because homeowners choose to buy property where there is an association, they are responsible for paying associated dues. However, because these dues are initiated by the homeowner's association -- not the federal or local government -- the charges are not tax deductible.
- You may not receive tax credits for improvements made to your home or property for local benefits. For example, you may not deduct charges assigned to you when a city installs new sidewalks, water lines, parking facilities and other similar improvements. You may deduct local benefit taxes only when they are performed to maintain or upgrade already existing benefits.
- Even if a taxing authority is the group that charges you for services, the charges do not count as taxes and cannot be deducted from the taxes you owe. This includes charges such as $10 service charges for water usage, $25 charges for monthly trash removal or fees assessed by a local government for not adhering with city code on your property.
- Renters who see their monthly rent payments increase after a property tax increase should not expect to deduct this increase from their taxes. The landlord makes the decision to raise rent -- not the taxing entity. The landlord -- who is the owner of the property -- already has the legal right to receive tax credits for the amount he pays in property taxes.
