Form 5695 for tax year 2024

[Kidcole77]

This is a nighmare.  My form 5695 was rejected apparently due to a Turbotax error.  And all the support ingormation about 5795 problems is a year old. 

This is Feb 2025.  What is going on and what can I do to file now?  I have no errors

[AnnetteB6]

If you are int the situation of needing to wait until March to be able to electronically file your return and include Form 5695 due to joint occupancy, you can file by mail, or you can consider deleting the Form 5695 altogether and filing your return without it.

Then, you can file an amended return later to claim the credit from Form 5695.  

[Kidcole77]

Excellent answer. I will file electronic and ammend later.  When I called Turbotax support yesterday, the phone person did not suggest this.  And I was upset about having to delay because they owe me this year.

Please mark this as answered!

[howardg11_]

After my return was rejected because of the joint occupancy statement issue with form 5965, the error "fix it" message said to re-file on 3/27/25, which I did.  Unfortunately, my return was rejected again because the joint occupancy statement issue still has not been resolved.  The  "how to fix the error" message now says to file again on 4/4/25 as the error should be resolved by then.  Hopefully, TurboTax will update the software so the required statement on joint occupancy can be added, and the return will be accepted. Hopeful, but not holding my breath.  I will do a mail filing and add my own joint occupancy explanation statement if they don't resolve the error in the next week.

[AnnetteB6]

The IRS updated the system this week to start accepting e-filed tax returns with Form 5695 Joint Occupancy. However, a processing problem still exists. To ensure the accuracy of tax returns, TurboTax is working hard to eliminate the issue. The expected resolution date is April 4, 2025. On or after that date, please log back into your TurboTax account, fix any error messages and e-file your tax return. 

There is also an option to print and mail your return. If the special rule for joint occupants applies to you, please make sure that the box on line 32a of Form 5695 is checked. Then attach a statement to your printed return that explains how the special rule applies to your situation. 

This statement should include:

• The names and Social Security numbers of all joint occupants.
• A description of the property and the nature of the improvements made.
• An explanation of how the costs were shared among the joint occupants.

TurboTax does not automatically generate this statement, so you will need to create it yourself. Make sure to include this statement when you mail your tax return to the IRS. 

Here is a possible template that you can use:

Statement for Special Rule for Joint Occupants

Taxpayer Name: [Your Full Name]

Taxpayer Identification Number: [Your SSN or ITIN]

Tax Year: [Year]

Names and Social Security Numbers of Joint Occupants:

[Full Name of Joint Occupant 1], [SSN of Joint Occupant 1]

[Full Name of Joint Occupant 2], [SSN of Joint Occupant 2]

(Include additional names and SSNs if applicable.)

Description of Property and Improvements:

The property is located at [Property Address]. During the tax year, the following energy-efficient improvements were made to the property:

[Description of Improvement 1] (e.g., installation of solar panels, energy-efficient windows, etc.)

[Description of Improvement 2] (if applicable).

Explanation of Cost Sharing:

The total cost of the qualified energy-efficient improvements was $[Total Cost]. The costs were shared among the joint occupants as follows:

[Your Full Name]: $[Amount Paid by You]

[Joint Occupant 1's Full Name]: $[Amount Paid by Joint Occupant 1]

[Joint Occupant 2's Full Name]: $[Amount Paid by Joint Occupant 2]

Based on these contributions, I am claiming my allocable share of the energy-efficient home improvement credit. My share was calculated as follows:

Credit Allocable to Me = (Credit Limit for Property) × (Amount Paid by Me / Total Amount Paid by All Occupants)

@howardg11_ 

[DRSX]

Error with Turbo Tax for form 5695 "Joint Occupancy" still exists after 4/4/2025.  Running the smart check shows the joint occupancy is still at issue.  Electronic filling is a no go.  This really is a slight aggravation.  My software is as up to date as the releases.  I'll file with someone else by the 15th if this doesn't work.  Maybe long term.  

[MarilynG1]

Did you share the cost of the energy improvements with someone you live with who is not your spouse?  If not, say NO to the Joint Occupancy question in the interview.  This does NOT apply to married filing jointly.

Even if you do live with someone who is not your spouse, are you sharing the Energy Credit with them?  If not, say NO to this question.

If you're using TurboTax Online, clear your Cache and Cookies, delete Form 5695 and step through the interview for this credit again.  Here's How to Delete Forms in TurboTax Online.

If you're using TurboTax Desktop, you can delete Form 5695 in FORMS mode and step through the interview again to let it repopulate.  If you still get an error, there's a box at the top of the form you can uncheck. 

This has been an IRS issue for quite some some, but they don't make it clear that this applies only in very specific situations (you're sharing the credit with someone you live with who is not your spouse).

@DRSX 

@Kidcole77 

@howardg11_