Form 5695 joint occupancy does not work

[John P4]

Form 5695 energy credit with regard to joint occupancy (other than spouse) still does not work right, even after the latest updates 2/24/2024.  For gas and electric heat pumps, the limit is $2000.  I split the cost with a joint owner, so my credit should be $1000.  If I use the joint occupant worksheet, Turbo Tax comes up with a credit of $250.  I know this is wrong.  The worksheet STILL does not work.  Has anybody else come to the same conclusion? 

The support sucks.  I can't ask a simple email question that can be answered definitively.

[arnoldpark]

I have the same problem. I'm copying my post elsewhere here to try to get visibility, I hope this can be corrected asap.

In the 5695 Joint Occupant Residential Energy Costs worksheet, for heat pumps/biomass stoves, the "total maximum eligible costs for column (b) of lines 9-11" should be 6,667, NOT 1,667 as currently in the worksheet. The current 1,667 leads to a max credit of 1,667 x 0.3 = 500 instead of the correct 6,667 x 0.3 = 2000 credit.

When I incorrectly say I don't jointly own the home, the correct credit of 2000 appears, since it bypasses this incorrect joint occupant worksheet.

Please correct this asap - it's a very simple fix to this prepopulated value from turbotax.

[DoninGA]

This is a known problem and is being worked on by the TurboTax development team.  Currently there is no firm date when it will be fixed.  Hopefully in the next week or two.

[John P4]

If this is a "known problem" as you say, then why isn't it fixed?  It's a simple math problem.  It's not some obscure tax law.  It could be fixed in a day.  And if this is a known problem, why does Turbo Tax claim that Form 5695 is ready for electronic filing.  It is not.  Right now, if I didn't notice this, or if I "trusted" Turbo Tax to be correct, I would have filed with incorrect numbers, and I would have had to file an amended return.  The status of this form is unacceptable and inexcusable.

[DoninGA]

@John P4 You are preaching to the choir.  Could not agree with you more.  However, since we are only volunteers on this forum we do not have direct access to the TurboTax developers.  If I could get a firm date from them I would post it all over this forum.  But unfortunately all we can do at this point is wait for the software to be corrected.

TurboTax normally updates their software on Thursdays, so check back on 03/07.

[AnnetteB6]

As of the last TurboTax update, most of the known issues with Form 5695 have been resolved.  

There is still a calculation issue affecting only joint ownership of the home and claiming one specific credit that is scheduled to be corrected with the next update around March 8th.  If this applies to you, see this link and sign up for updates:  Why is TurboTax limiting my Home Energy Credit when I have a non-spouse occupant?

If you are still experiencing an issue, please respond with details so that someone may help you get it resolved.

@John P4 

@arnoldpark 

[Davejp93]

Hello My name is Dave Philip I also had the same joint occupancy problem in 2025. It is still not fixed and my return got rejected. Can I please get some help on how to resolve it? 

[BrittanyS]

If you have Form 5695 and claiming joint occupancy, the IRS will not be accepting these returns until 3/16/25. You can see this on this IRS site. The language you see below is from Row 39 of the Tax Year 2024 spreadsheet.

Taxpayers claiming Joint Occupancy on Form 5695 will have to file via paper if filing their return before the Form 5695 schema is updated in mid-March. This temporary limitation should only impact a subsection of Form 5695 filers. For a preview of the TY24 draft form and instructions for Form 5695, please see the Draft tax forms on IRS.gov at https://www.irs.gov/draft-tax-forms. Submission of Forms 5695 that do not claim Joint Occupancy may be e-filed at the start of Processing Year 2025

@Davejp93 

[jqjyjohnma]

I submitted twice since March 09 and 13 after the program has updated.  My return still got rejected.  Message is to wait to resubmit after March 27.  Very stressful 

[LeticiaF1]

This return can't currently be processed for e-filing due to Joint Occupancy on Form 5695. ‌This is due to a processing error that will be corrected on March 27, 2025. On or after March 27, 2025 open the rejected return, review it for errors, and resubmit the return for electronic filing. If you don't want to wait until March 27, you may print the return and file it by mail.

Known issues and solutions | Internal Revenue Service

@jqjyjohnma 
 

[madgypsy]

March 29th here and the form is still broken, they've walked the date back to April 4th to have it fixed, but if you don't e-file by March 31st it costs more.  So thanks for telling us to try again on March 16th, and then try again on March 27th, and try again on April 4th.  Why should we trust these estimated resolution dates?

[jqjyjohnma]

Program update on 3/27 and 3/28 failed. Tried manual update from Turbotax site and it failed. Please help

[jqjyjohnma]

Pls clarify what you mean it will cost more.

[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)

@madgypsy 

[jqjyjohnma]

TurboTax 2024 Online update assked me to update but the update failed on 2025030, 20250331 ans today 20250401.  Please help on how else can I get update if it keeps on filing . PC Microsoft error code=1603.