Form 5695 Bug: Cost of enabling property must have a value

[terrafogorn]

I'm trying to claim new windows and doors improvement costs for joint occupants using form 5695 and I'm hitting a dead end with what appears to be a bug. 

I enter the cost of the windows/doors, along with the respective QMID. I'm then asked, "Did you have any of these residential energy property costs in 2025?", I answer no (as windows/doors are not on the presented list). The next question is "Improvements or replacements installed for enabling property". I am forced to select something to continue, so I select "Windows and skylights". The remaining fields (QMID and cost) are under the header, "Enter information about panelboards, subpanelboards, branch circuits, or feeders.", so I leave those blank. 

During the review stage, I get the error: "Form 5695: Cost of enabling property must have a value when any enabled property code (A-G) is selected.". If I go back and fill in the QMID and cost fields on that previously mentioned step (about panelboards, etc), I get a new error: "Form 5695: Cost of enabling property should not have a value since the energy property was not installed by you in connection with a home in the United States.". I have no idea how to resolve this bug.

I've deleted both 5695 forms, cleared my cache and tried 3+ times, trying every way I can to work around this bug. I have no idea how to resolve it.

Pulling my hair out trying to get this to work. Is anyone from Turbotax able to help me? I don't want to pay extra to chat with an expert for what appears to be a software bug. 

[DonLuis]

Hope you still have some hair left.  Supposedly, help is on the way March 6, 2026.  I spent over three hours with one agent and another hour with another agent.  I found the problem myself.  A simple input versus output, but no one to answer or acknowledge the problem let alone the fix.  I did similar iteration many many times as you did.  I'm try to get my credit for installing a new heat pump.

Here's what I got today, when I tried again:

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.

[terrafogorn]

Interesting, thanks for sharing. You got that message about the March 6 timeline from an error on the Turbotax application itself? Or did one of the CS agents share this? I'll check back in later then. Seems crazy to me that it's this buggy this far into tax season.

[DonLuis]

The agents could not help. I got the message today after I tried for the 15th time, over about a two week period, to correct the error by going through their correction process. I submitted my return using the online Turbo Tax and it was rejected in about 10 minutes due to the error on the 5695 form. 

[inpatel.austin]

I have similar issue.

I have heat pump installed line 29 a has QMID and cost of installation

No other cost associated with panel or electrical work.

2000 credit is calculated.

Submitted form and got rejected.  Email with rejection does not give any code.  The following is the message.

/Return/ReturnData/IRS5695/EgyEffcntHmImprvCrGrp/EnablingPropertyGrp/PanelboardCktFeederStdPctCrAmt - There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return

Opened TT (desktop) and checked status.  It also says return was rejected.  Let's fix error.  When I let TT fix error, nothing is being changed.  It says ready to file (I thought may be it fixed something without me changing anything) and upon re-filing, I got the same error.

My 5695 where this data was used is shown below:

Any idea, what is the reason?  Last year, there were few messages and someone pointed that Joint occupancy needs to be unchecked on top of 5695.  I do not have that box checked (Married filing jointly).

Please help me with this issue.  I am paying significant penalty for under-withholding so sooner the better.

Thanks.

[ah1838]

I am having this same issue -- trying to claim the $2000 credit for a new heat pump. Returns rejected, and TT gave me this -- 

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.

Are we really to believe something is going to happen on March 6? Is there nothing wrong with the way I filled out the form, but instead something wrong with the IRS or TurboTax system?

I noticed that there is nothing on my Form 5695 until I get to the top of Part II, Section B. Is that correct if I'm claiming credit for a heat pump? (not geothermal)

[Vanessa A]

 This is an IRS issue.  The IRS has issued a correction to the 2025 Instructions. 

We have corrected the calculation for joint occupants of a home who are claiming the energy efficien...

Although, the IRS is saying March 6, if this is the date that they will have the forms corrected, TurboTax software will take a little bit to then make the changes.  You can attempt to refile on the 6th or wait for several days after that.  At this point I do not see anything stating a date as it does depend on the IRS actually getting their instructions and forms fixed before anything else can be done. 

[inpatel.austin]

I went through IRS instructions and there is nothing to be filled out unless you are claiming other credits.  I am not sure where you get the message to try after March 6th.  Last night, when opening TT (desktop), I needed to update so this is not something that needs to take long time.

TT's customer care is pathetic.   I am not even sure if they moderate this forum or just ask users to help each other.   If this is a software bug, it cannot take this long to fix.  They push so many updates regularly that there is no excuse of waiting till March 6th (which by the way I did not see using TT desktop).

[inpatel.austin]

This correction appears to affect only qualified improvements made in joint occupancy property.  If i am not checking the box for joint occupancy, why is this correction applicable to me?   More importantly, the TT (desktop) when checking status, indicates that rejected return reviewed, errors fixed and ready to refile (even when software knows nothing was changed).

[DonLuis]

There is nothing wrong with IRS form as far as I can tell.  It's TT not inputting the information correctly.  The second person that helped me online was able to open my Online account in TT desktop and manually correct the error and then ran a check.  It was fine.  My error shows up on item 17a, b, c and d of form 5695.  17 a, b, and c are all marked "No" when they should be marked "Yes".  One question about if you plan on keeping your heat pump for more than 5 years was never asked by TT online. 17d I believe should have had my address and it was blank.  So let's hope TT fixes "their" bug.

[ah1838]

I noticed these all said "no" on mine too. I think it's because to get to the spot in the form where you would add those, you have to say "yes" to the windows and doors improvements, but then you can't add your address in that section. who was able to fix this for you? I don't have the "ask the expert" feature because I didn't pay for it!

[inpatel.austin]

Thanks for posting your experience.  Since I am working with desktop versions I was able to go directly to form and modify worksheet to change 17a, b and c and provide property address.  However, the return was still rejected.  

Any idea if I am missing anything from your suggestion?

[inpatel.austin]

see response from @DonLuis

This appears to be TT issue and not IRS.

[DonLuis]

Here is what the agent posted 

[dkissel]

I'm using TT Desktop and my return was rejected for the same reason.  When I return to TT Desktop and look at the E-File status it says "This return cannot be filed at this time due to a processing error that will be corrected on March 6, 2026."   So because my Fed was rejected, my State was rejected.  Nothing like waiting for a fix at Tax Time.