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Level 2

Question

Form 5695 processing error

116 replies
450 views

Good afternoon,

My federal and State returns were rejected due to a processing error with Joint Occupancy Form 5695. I've reviewed the TurboTax community messages and understand this is a known issue.... and I ran an error check several times. Please share if this error will, in fact, be resolved by March 27th, as the message states.

Thank you, I appreciate the help.

TurboTax Home & Biz Windows

MarilynG

Alumni - Intuit

This is NOT an error, if you say NO to the Joint Occupancy question in the interview and you can Efile now.

Joint occupancy does NOT apply to Married Filing Jointly.

If you are using TurboTax Desktop, in FORMS mode, uncheck the box at the top of Form 5695 for Joint Occupancy.

In TurboTax Online, you should clear your Cache and Cookies, then say NO to this question in the interview for Home Energy Credits.

@LElliott3

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LElliott3Author

Level 2

Hi Marilyn -

We are married and filing separately, so the Joint Occupancy form is required... How do I fix this processing error? Or do I need to create a statement explaining our decision about taking the credit (100% to me as I paid for the new heat pump) and include it with the paper return? I've reviewed IRS directions for this form and would appreciate more clarification; thanks!

@MarilynG

MarilynG

Alumni - Intuit

If you want to indicate Joint Occupancy on Form 5695, you will need to either mail your return or wait until the IRS has updated this anomaly; March 27 is still the expected resolution date.

Here's more info on MFS Residential Energy Credit.

If you don't have some other compelling reason for MFS, you may want to use the Forms > Open Form > What-If function to test filing status results.

@LElliott3

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cjk420

Level 4

I have the exact same problem and concern that the problem will not be fixed on 3/27. I don't want to mail my return in.

I don't want to uncheck the box like some experts have suggested as I live with my partner, we co-own our house, and file separately. But I paid for the new boiler and want to claim the entire credit (600) on my return. She will not be making any claim for the credit. In any case there was no allowance when completing the return for allocating the credit 50/50 anyway.

It is concerning that Intuit took my payment for the filing federal and state and filed knowing my return would be rejected. This has never happened to me before. Confusing and frustrating. Disappointed.

CatinaT1

Alumni - Intuit

Returns aren't due until April 15, so you just need to be patient. This is an IRS delay: Known issues and solutions | Internal Revenue Service

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cjk420

Level 4

"Returns aren't due until April 15, so you just need to be patient. This is an IRS delay: Known issues and solutions | Internal Revenue Service"

Unfortunately I dont have ms excel so I cant review the known issues and solutions at this link or my situation. Hope this will be fixed by 3/27.

thanks

Jameslu100

Level 2

Early AM on the 27th East Coast here, tried, and still getting the same message.

This is getting really annoying

cjk420

Level 4

Is Intuit going to test and confirm that the IRS has fixed this today (3/27) or do we need to do a trial and error until our forms are accepted?

Slhpete

Level 4

Yes, when this error is corrected when will we know? No change on the IRS website as the issue still says open.

jedarojr

Level 2

Not working. It is the 27th. What now. Unchecking box does nothing.

CatinaT1

Alumni - Intuit

Please wait until later today or tomorrow for the update to take place. Then you will be able to successfully file.

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cjk420

Level 4

The refile I did this morning has not be accepted or rejected. It says status is "processing". Wonder why mine has not been rejected like others on this forum who refiled today?

Slhpete

Level 4

Not fixed. Still rejecting and says still open on IRS website. Today is March 27. Thinking about removing the energy credit and efiling and then amending return later.

Jameslu100

Level 2

As of the 27th, the status is in "pending" status for a long period of time already, i do not know if this is actually a good thing or not. Since at least you get rejection right away before.

cjk420

Level 4

I went back and looked at the confirmation email I received after I re-filed my return at 758a pdt and it does state that it was transmitted to the IRS and to expect 24-48 hrs for acceptance or rejection.

Consistent with this, both my fed and state returns are pending status.

Has anyone else gotten that confirmation email and read it carefully?

Jameslu100

Level 2

my status says "pending" for more than 24 hours already, this is getting frustrating. As i want to do it the right right and not taking a hit of claiming only 1 credit like other suggestions online. I have spent $80+ on the software and have been doing this every year.

andyoz

Level 2

Both mine and my girlfriend’s were rejected both today and yesterday. I really hope they have a fix soon or will be automatically filing for an extension for us. We paid $200 each for this software and do every year. So incredibly frustrating. Especially when TT proactively calls me to tell me to resubmit. Then when I tell them the issue they have no idea about it and tell me, “Try again later.”

LESLIE63

Level 2

TO OVERIDE TURBO TAX ERROR..2 STEPS

1. UN CHECK BOX TOP 5695 VERY TOP BEFORE PART 1 IF mfj

2. UN CHECK BOX 5695 LINE 32A..REQUIRES OVER RIDE!

RESUBMITT EFILE AFTER DOING THESE TWO, MY FED AND STATE WERE ACCEPTED IN1 HR

,I WAS REJECTED 5 TIMES BEFORE..AFTER DOING THE 2 UNCHECKS ONLY MY FED AND STATE WERE ACCEPTED IN~1 HR 3/28/25 THIS IS tt PROGRAM ERROR..NOT irs IT SEEMS TRY IT,,

rick27607

Level 2

Hi, thanks. And I tend to agree, and I'm not sure why Turbotax does not provide a better description of the error and where it is occurring when it is rejected.

rick27607

Level 2

I tried again after March 27 and received the same rekection error message yesterday, now showingl a new target date of April 4, 2025. So is this problem perpetual and will continue beyond April 15, and if so, at what point should TTax recomend that I submit it via snail mail to the IRS?

Is his is a problem occurring on the TurboTax side transmitting IRS side receiving?? In either case, TurboTax, should do a better job at proactively communicating the issue, where the problem is occurring and offering better resolution options resolution to its customers.

cjk420

Level 4

Please see my previous comment on how I fixed this and had my return accepted. I feel as though TurboTax input process does not result in the correct input on the 5695 form that is filed for my case at least. So I deleted the form and started over and said NO to the joint ownership question as this is where the disconnect/incorrect entry on the 5695 occurs (for me at least as there is no shared allocation of the credit).

angelasturdevant2

Level 2

In my case, my husband and I are married filing separately and we shared the cost of a new heat pump for the house we jointly own. So I can’t uncheck the joint occupancy box, and technically we should split the credit.

Should I just try unchecking the box and claiming the entire credit on my return? I’ve seen other comments where married filing separately returns got rejected if both returns didn’t include Form 5695, so I don’t think that’ll fix it either. Help me TurboTax!

aaron316

Level 2

Thank you all for your inputs.
I reviewed the section on energy credits, changed the joint occupancy question, then line 32 on the form became unchecked. Resubmitted the return and was accepted within an hour!

This community is awesome!!

Slhpete

Level 4

No rejected return alone requires amended return. I did one to correct the single occupany to joint with no change in tax liability. I included the missing statement explaining that and how the energy credit money was split and with whom (including SSN) since it could not be corrected or provided electronically, I'm mailing the amended return that Turbotax can generate.

rick27607

Level 2

I suppose one can follow this route or do not select joint occupancy so the efile successfully completes and be ready to provide an explanation with any needed receipts backup should if the IRS contact you with any questions later on.