topic Fed and State filing rejected due to form 5695 in Deductions & credits

Fed and State filing rejected due to form 5695

tblong — Sat, 07 Mar 2026 16:56:07 GMT

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.

Re: Fed and State filing rejected due to form 5695

Bnadeau — Fri, 27 Feb 2026 22:51:00 GMT

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!

Re: Fed and State filing rejected due to form 5695

tblong — Sat, 28 Feb 2026 12:45:52 GMT

@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.

Re: Fed and State filing rejected due to form 5695

Bnadeau — Sun, 01 Mar 2026 15:42:10 GMT

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?

Re: Fed and State filing rejected due to form 5695

kayak1 — Sun, 01 Mar 2026 15:48:05 GMT

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.

Re: Fed and State filing rejected due to form 5695

Bnadeau — Sun, 01 Mar 2026 16:24:29 GMT

Unfortunately not able to do that in the OnLine Version

Re: Fed and State filing rejected due to form 5695

tblong — Sun, 01 Mar 2026 18:48:09 GMT

@kayak1 wrote:
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.

Nice, thanks @kayak1 that is indeed the issue with the generated form 5695. Reject code makes more sense now. Unfortunately like @Bnadeau pointed out don't think those of us using the online version can fix this manually unless you might know how?

Re: Fed and State filing rejected due to form 5695

kayak1 — Sun, 01 Mar 2026 19:48:17 GMT

Unfortunately, I don't. I'm using the desktop version. All I can think of is answering the question with "yes" in the step-by-step method, then going back and changing it to "no".

Re: Fed and State filing rejected due to form 5695

Mogirl — Mon, 02 Mar 2026 00:27:20 GMT

@kayak1 That was the error on my worksheet, as well. Thanks for the heads-up. Were additional fees required to refile?

Re: Fed and State filing rejected due to form 5695

kayak1 — Mon, 02 Mar 2026 00:32:15 GMT

No additional fees. Just some wasted electrons.

Re: Fed and State filing rejected due to form 5695

btlt356 — Mon, 02 Mar 2026 13:42:40 GMT

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.

Re: Fed and State filing rejected due to form 5695

Caitn1 — Fri, 06 Mar 2026 21:33:17 GMT

Yep..I had the same issues...I answered "Yes" on the online tt user interface to questions 17a-c...yet tt produced it as a "No" on the actual .pdf form...17d should also list our home address whereas tt left it blank on the .pdf form...25a was also left blank by tt although I answered the question through the user interface...Pissed we have to wait for tt to get its act together.

Re: Fed and State filing rejected due to form 5695

tblong — Fri, 06 Mar 2026 13:39:21 GMT

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.

Re: Fed and State filing rejected due to form 5695

Caitn1 — Fri, 06 Mar 2026 21:37:01 GMT

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.

Re: Fed and State filing rejected due to form 5695

Caitn1 — Fri, 06 Mar 2026 23:33:43 GMT

I was also on the phone with a tt rep today..we spent over an hour trying to troubleshoot..I was even told at one point it may be due to the govt shutdown even if some employees are still working...at the end, the rep just told me she'll check back with me on Monday and hopefully it'll work over the weekend...at no point did she want to admit it was turbotax 's fault...lol

Re: Fed and State filing rejected due to form 5695

MarilynG1 — Sat, 07 Mar 2026 01:03:46 GMT

If you had no errors in your return, try deleting Form 5695, step through the Home Energy Credit interview again, checking the correct boxes and indicating your main home, and skipping the REVIEW tab and go right to FILE.

@Caitn1

Re: Fed and State filing rejected due to form 5695

user17728180909 — Sat, 07 Mar 2026 01:35:48 GMT

Has this actually worked? I'm skeptical because the review always changes box 17A B and C to No when it is YES. Clearly a software bug

Re: Fed and State filing rejected due to form 5695

user17728180909 — Sat, 07 Mar 2026 01:43:17 GMT

this exact issue is happening to me and its so frustrating. TT can you send us an update when this is fixed?

Re: Fed and State filing rejected due to form 5695

Caitn1 — Sat, 07 Mar 2026 08:17:48 GMT

MarilynG1,

I did exactly as directed...deleted the form, started over with the section, skipped Review tab and went straight to File but when I went to View Returns to double-check my name,ss # as suggested in the File process the form still incorrectly translates my user interface responses..my husband even did an attempt and tt still erroneously codes our responses from Yes to No..all the issues we spoke about are still present.

Re: Fed and State filing rejected due to form 5695

ah1838 — Sat, 07 Mar 2026 12:02:04 GMT

I'd been waiting for this fix for 9 days. Wasted so much time on the phone, deleting 5695, re-answering the questions, checking and finding the wrong boxes were still checked. Didn't want to wait any longer. Redid everything in Free Tax USA. Took 30 minutes, far less than I've spent trying to troubleshoot in TT. Returns accepted within the hour. Never using TT again.