Form 5695 processing error

[LElliott3]

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.

[MarilynG1]

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 

[LElliott3]

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!

@MarilynG1 

[MarilynG1]

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 

[jboy21]

I have an additional question with Form 5695 processing error.

TurboTax won't allow me to uncheck Box 7c for form 5695 "If the special rule for Joint Occupants applies, check here and attach a statement. " There is a box that has an X in it. I'm trying to Un-X it, but nothing is happening. I am single, but live with my girlfriend. I paid 100% for the Battery qualifying for the credit, there was no shared cost.

When I submitted my returns, they were rejected both for Federal and California stating the Processing Error for 5695. But I wanted to clean up that checked box too, could that be affecting the rejection? I'm using TurboTax Premier Desktop. I went into Forms and unchecked the Joint Occupancy to see if that would help, but rejected again on the second submission.

[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 17, you may print the return and file it by mail.

Known issues and solutions | Internal Revenue Service

@jboy21 

[jboy21]

Thank you. I guess I will have to wait until 3/27 in order to e-file. I hope they get it corrected by then.

[olorin2]

I have the same issue, where the box for Joint Occupancy is now unchecked, but box 32a is still checked and you cannot remove it.  

Instead of just re-posting the stock message about when the problem will be fixed, can someone clarify if this fix will just let you e-file with joint occupancy in general, or if it will let us remove the check from box 32a?  Or both?  

And btw, the fix date for this appears to have been pushed back multiple times, so I don't have a lot of faith that it will actually be fixed by 3/27.  Really hoping that's the magic date though.

[cjk420]

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]

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

[cjk420]

yes it is an error.  if I uncheck the box I would be lying as I am not married. I co-own the house with my partner and we file separately.  I paid for the new boiler and wanted to claim the entire credit and she will not be claiming any credit.  So the 600 credit to me seems appropriate and this is what was submitted by turbotax and the return was rejected by both the IRS and State.  This has never happened to me. 

[CatinaT1]

Your return is correct, it's the IRS who is rejecting it because they are delaying the acceptance of these returns. The latest date we have from them is March 27 to begin accepting these returns.

[cjk420]

"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]

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

This is getting really annoying

[cjk420]

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?