Fed and State filing rejected due to form 5695

tblong · ‎March 07, 2026

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.

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...

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 @MarilynG1 @wadec22

View solution in original post

Bnadeau

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!

tblong

@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.

Bnadeau

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?

kayak1

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.

Bnadeau

Unfortunately not able to do that in the OnLine Version

tblong

@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?

kayak1

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".

Mogirl

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

kayak1

No additional fees. Just some wasted electrons.

btlt356

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.

Caitn1

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.

tblong

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.

Caitn1

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.

Caitn1

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

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Fed and State filing rejected due to form 5695