I just filed my daughter's Federal and State (Colorado) tax returns but they were rejected with the error, "Reject Code 5695_Joint_Occupancy". There is a check box, line 32a, in form 5695 which says, "If the special rule for joint occupants applies, check here and attach a statement". This box is checked, no matter what and I think it is the reason for the problem. The property is jointly owned (two people), but all the energy improvements as it relates to this credit were paid by my daughter. If I understand the IRS instructions of form 5695, I think Line 32a with the checkbox, has to do with lines 7a through 7c of PARTI of the form which is the "Residential Clean Energy Credit". She did not have any credits on that section. The only credits she had was in PART II, the "Energy Efficient Home Improvement Credit". This is why I think the TurboTax program has a bug that needs to be fixed. Can someone please tell me if my assessment is wrong and if so then how do I go about fixing this error so I can e-file the returns?
