Description of error:There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return What needs to be done:This return cannot be filed at this time due to a processing error that will be corrected on March 6, 2026. On or after this date, open the rejected return, review it for errors, and resubmit the return for electronic filing. There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return Reject Code /Return/ReturnData/IRS5695/EgyEffcntHmImprvCrGrp/EnablingPropertyGrp/PanelboardCktFeederStdPctCrAmt Your software allowed me to file the other day on Feb 26th '26 but was rejected with the error shown above. Why would your software (TurboTax) allow me to file if the form is known not to be working yet?! Others with issues:https://ttlc.intuit.com/community/after-you-file/discussion/turbo-tax-online-fed-and-state-filing-rejected-due-to-form-5695/00/3803311/amphttps://ttlc.intuit.com/community/tax-credits-deductions/discussion/us-form-5695-residential-energy-credits-available-soon-yet-available/00/3731647https://ttlc.intuit.com/community/taxes/discussion/my-federal-tax-return-was-rejected-but-i-filled-it-out-correctly-seem-to-be-an-issue-with-the-form/00/3185445Update 2026-02-28:I got on the phone with a TT expert and they confirmed this is a TT issue with form 5695 that will be fixed by the March 6th date advertised. I personally will be waiting till after the March 6 and calling to confirm fixed before resubmitting. Update 2026-03-06 08:35 ET:Got on the phone again with a TT expert and the issue is still not resolved as of this update. I've been attached to the incident they have for this form and will be notified when fixed. Update 2026-03-07 11:00 ET:Got on the phone again with a TT expert and the issue is still not resolved as of this morning on March 7th. I ask the support person if they can provide an ETA (as the March 6th advertised date has since passed) and they were not able to provide one. A message to TT management: If you are unable or unwilling to provide an update on WHEN this will be fixed, I have no choice but to switch and recommend folks switch to FreeTaxUSA. - Sincerely a TurboTax user since 2006.

Update for all - Solution found Source credit to user IHateTurboTax on this thread: https://ttlc.intuit.com/community/after-you-file/discussion/re-turbo-tax-online-fed-and-state-filing-rejected-due-to-form-5695/01/3823161/highlight/true#M820802 Here are the steps to correct form 5695 box 25a with a properly selected value:Select Yes at "Did you install improvements or replacements for enabling property? Enabling property: Certain electrical improvements - like upgrading or replacing panelboards, subpanelboards..."At next page "Improvements or replacements installed for enabling property", select at least one checkbox, enter A1B2 for both codes, and a fake value for the "total cost you paid" field. Note all these are fake values and will be undone in the next steps.Click Continue once. You should be at the page titled "Qualified energy property costs"Click Back twice which should take you back to the page from step #1 above.Select No and then click Continue. You should be back to the page titled "Qualified energy property costs"Complete the next pages as you should until you get back to the deductions and credits page.Navigate to the Federal review page and run the checks. This should find the fix to correct for form 5695 box 25a where it allows you fix the form manually to add a valid yes or no to box 25a.Follow the steps provided to add a Yes or No answer to box 25a then click Continue.Run through all remaining checks.Go to File return. Click "View Form" before e-file and verify form 5695 box 25a has either a Yes or No value selected. If you selected No for box 25a, also ensure the fake values entered earlier in boxes 25c, 25i, and 25ii are now empty in the generated form.TT support, management, and the developers should be ashamed of themselves for not addressing this issue in a timely manner and for making users jump though these hoops. @BS98282 @KristinaK @DianeW777 @Phil9981 @Bnadeau @kayak1 @Mogirl @Caitn1 @MarilynG @wadec22

T

tblong

Level 3

Solved

Fed and State filing rejected due to form 5695

Forum|Forum|7 months ago
February 27, 2026
56 replies
968 views

Description of error:

There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return

What needs to be done:

This return cannot be filed at this time due to a processing error that will be corrected on March 6, 2026. On or after this date, open the rejected return, review it for errors, and resubmit the return for electronic filing.

There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return

Reject Code

/Return/ReturnData/IRS5695/EgyEffcntHmImprvCrGrp/EnablingPropertyGrp/PanelboardCktFeederStdPctCrAmt

Your software allowed me to file the other day on Feb 26th '26 but was rejected with the error shown above. Why would your software (TurboTax) allow me to file if the form is known not to be working yet?!

Others with issues:

Update 2026-02-28:

I got on the phone with a TT expert and they confirmed this is a TT issue with form 5695 that will be fixed by the March 6th date advertised. I personally will be waiting till after the March 6 and calling to confirm fixed before resubmitting.

Update 2026-03-06 08:35 ET:

Got on the phone again with a TT expert and the issue is still not resolved as of this update. I've been attached to the incident they have for this form and will be notified when fixed.

Update 2026-03-07 11:00 ET:

Got on the phone again with a TT expert and the issue is still not resolved as of this morning on March 7th. I ask the support person if they can provide an ETA (as the March 6th advertised date has since passed) and they were not able to provide one.

A message to TT management: If you are unable or unwilling to provide an update on WHEN this will be fixed, I have no choice but to switch and recommend folks switch to FreeTaxUSA. - Sincerely a TurboTax user since 2006.

TurboTax Premier Online

Best answer by tblong

Update for all - Solution found

Source credit to user IHateTurboTax on this thread: https://ttlc.intuit.com/community/after-you-file/discussion/re-turbo-tax-online-fed-and-state-filing-rejected-due-to-form-5695/01/3823161/highlight/true#M820802

Here are the steps to correct form 5695 box 25a with a properly selected value:

Select Yes at "Did you install improvements or replacements for enabling property? Enabling property: Certain electrical improvements - like upgrading or replacing panelboards, subpanelboards..."
At next page "Improvements or replacements installed for enabling property", select at least one checkbox, enter A1B2 for both codes, and a fake value for the "total cost you paid" field. Note all these are fake values and will be undone in the next steps.
Click Continue once. You should be at the page titled "Qualified energy property costs"
Click Back twice which should take you back to the page from step #1 above.
Select No and then click Continue. You should be back to the page titled "Qualified energy property costs"
Complete the next pages as you should until you get back to the deductions and credits page.
Navigate to the Federal review page and run the checks. This should find the fix to correct for form 5695 box 25a where it allows you fix the form manually to add a valid yes or no to box 25a.
Follow the steps provided to add a Yes or No answer to box 25a then click Continue.
Run through all remaining checks.
Go to File return. Click "View Form" before e-file and verify form 5695 box 25a has either a Yes or No value selected. If you selected No for box 25a, also ensure the fake values entered earlier in boxes 25c, 25i, and 25ii are now empty in the generated form.

TT support, management, and the developers should be ashamed of themselves for not addressing this issue in a timely manner and for making users jump though these hoops.

@BS98282 @KristinaK @DianeW777 @Phil9981 @Bnadeau @kayak1 @Mogirl @Caitn1 @MarilynG @wadec22

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Bnadeau

Level 2

Just tried to file as well.
Reject Code /Return/ReturnData/IRS5695/EgyEffcntHmImprvCrGrp/EnablingPropertyGrp/PanelboardCktFeederStdPctCrAmt
"This return cannot be filed at this time due to a processing error that will be corrected on March 6, 2026"

Come on TurboTax... Issue with business return, not issue with personal. Not making things easy this year!

T

tblongAuthor

Level 3

@Bnadeau Think I found at least one of the mistakes TT made. Checked my form 5695 generated above by TT and the #17 checkboxes don't match my answers in TT.

B

Bnadeau

Level 2

I'm using Chrome version. Found the form, seems to be set right, I think... Did you find a way to get it to submit?

K

kayak1

Level 2

Use forms view. Go to line 25a on form 5695. Manually select "no". Turbotax, for some reason, is leaving this checkbox blank. Resubmit. Worked for me.

B

Bnadeau

Level 2

Unfortunately not able to do that in the OnLine Version

btlt356

Level 2

To recap, my returns, like everyone else’s returns that included a form 5695 deduction, was rejected several times. Given that I have refunds coming from both federal and state I had no intentions of waiting until March 6 or March 7 or some time in the future when TurboTax finally got around to resolving the problem with correctly processing inputted and transmitted data from form 5695 to the IRS.

I resolved it by going to turbo tax, searching for the form 5695 and completed it manually using the IRS form 5695 instructions (available from the IRS). After completing the form manually, I had turbo tax re-check and verify that my returns were error free. I then re-transmitted both returns using eFile. Finally, both my federal and state taxes returns were accepted.

This should not have been a difficult fix and update by turbo tax. I am really surprised and frankly very disappointed that TT didn’t address and fix this. I’ve been using TT for years and this has given me pause about using them again in the future. My confidence in their product has definitely given me reason to question the accuracy of their software.

T

tblongAuthor

Level 3

Update 2026-03-06 08:35 ET:

Got on the phone again with a TT expert and the issue is still not resolved at of this update. I've been attached to the incident they have for this form and will be notified when fixed.

Updated my post with the details above.

C

Caitn1

Level 3

Please keep us apprised...I was on the phone with tt cs for over an hour and she couldn't help me..we tried to further troubleshoot but at the end she said she'll call me back on Monday to check if the issue has been resolved.

E

ejchien

Level 2

TurboTax, please also attach me to the incident for this form; I am also waiting to resubmit

T

tblongAuthor

Level 3

@ejchien wrote:
TurboTax, please also attach me to the incident for this form; I am also waiting to resubmit

Hey @ejchien , I would not recommend relying on TT reading your request above. Instead, I'd suggest logging into TT, click Help, get them to call you, and then ask to be notified when fixed. I'll also be sure to update this post as well once I have any updates myself.

T

tblongAuthor

Level 3

Update 2026-03-07 11:00 ET:

Got on the phone again with a TT expert and the issue is still not resolved as of this morning on March 7th. I ask the support person if they can provide an ETA (as the March 6th advertised date has since passed) and they were not able to provide one.

A message to TT management: If you are unable or unwilling to provide an update on WHEN this will be fixed, I have no choice but to switch and recommend folks switch to FreeTaxUSA. - Sincerely a TurboTax user since 2006.

Edited post with the update noted above.

T

tblongAuthorAnswer

Level 3

Update for all - Solution found

Source credit to user IHateTurboTax on this thread: https://ttlc.intuit.com/community/after-you-file/discussion/re-turbo-tax-online-fed-and-state-filing-rejected-due-to-form-5695/01/3823161/highlight/true#M820802

Here are the steps to correct form 5695 box 25a with a properly selected value:

Select Yes at "Did you install improvements or replacements for enabling property? Enabling property: Certain electrical improvements - like upgrading or replacing panelboards, subpanelboards..."
At next page "Improvements or replacements installed for enabling property", select at least one checkbox, enter A1B2 for both codes, and a fake value for the "total cost you paid" field. Note all these are fake values and will be undone in the next steps.
Click Continue once. You should be at the page titled "Qualified energy property costs"
Click Back twice which should take you back to the page from step #1 above.
Select No and then click Continue. You should be back to the page titled "Qualified energy property costs"
Complete the next pages as you should until you get back to the deductions and credits page.
Navigate to the Federal review page and run the checks. This should find the fix to correct for form 5695 box 25a where it allows you fix the form manually to add a valid yes or no to box 25a.
Follow the steps provided to add a Yes or No answer to box 25a then click Continue.
Run through all remaining checks.
Go to File return. Click "View Form" before e-file and verify form 5695 box 25a has either a Yes or No value selected. If you selected No for box 25a, also ensure the fake values entered earlier in boxes 25c, 25i, and 25ii are now empty in the generated form.

TT support, management, and the developers should be ashamed of themselves for not addressing this issue in a timely manner and for making users jump though these hoops.

@BS98282 @KristinaK @DianeW777 @Phil9981 @Bnadeau @kayak1 @Mogirl @Caitn1 @MarilynG @wadec22

W

wadec22

Level 2

just used this work around and it appears to have worked. forms all look accurate, return submitted. It has been 10 minutes and no rejection emails. thank you again for all your time and energy.

really disappointed TT has not fixed on their own. It has been such a great tax solution for me for so long...

T

tblongAuthor

Level 3

@wadec22 wrote:
just used this work around and it appears to have worked. forms all look accurate, return submitted. It has been 10 minutes and no rejection emails. thank you again for all your time and energy.

really disappointed TT has not fixed on their own. It has been such a great tax solution for me for so long...

You are very welcome @wadec22. Refiled mine with the same corrections this morning at 8am ET and they were accepted at 12p ET.

C

Caitn1

Level 3

After an exhausting time (both husband and I) on the phone with tt cs without a proper solution, I realized for the time we consumed trying to resolve the issue, we could have simply done our taxes again at freetaxusa. I *thought* it would be difficult since we were tt customers for decades so it had our rental depreciation worksheets and we did not want to have to manually type the info again on FTUSA...well..we did it! And happy to report that the federal and state return numbers align with that of tt! What a relief to know that now we are not bound to tt..I paid under $25 to prepare both fed and state returns and efile them! Whereas, I prepaid to get Premier tt online at the the early bird special $120 for both fed and state! And freetaxusa completed the 5695 form correctly! No need for a workaround...Looking forward to using FTUSA for subsequent years at only $25...:) BTW, just got an email from FTUSA that our federal and state returns got accepted as I was typing this post...Yay!

U

user17730636911

Level 2

I wonder if this is the same issue we had on ours. We had energy credit for central heat and air installed. we filed and it was accepted with a refund. The irs reviewed and now say we owe when i asked it was because of the energy deduction they said the code that i got for our brand off the irs website isnt allowed and one of our forms says house is not in the us but other form does. I called turbo tax and they say they dont see any of that and they can see im due for a refund. The irs says that i can appeal and submit my proof that i purchased item with code from their website which im going to do when we get the letter from the irs.

J

jim_ci

Level 2

The issue is still not fixed. Worse yet there is no updated date on when it will be corrected.