Form 5695 processing error

[Slhpete]

First told 3/17, then 3/27, then 4/4 so not believable it will be fixed.  Sad.

[CatinaT1]

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)

[cjk420]

I went back to revisit credits. Then I entered that I had no energy credits to claim. TT then said it was going to delete existing. I ok'ed that.  Then I started over fresh.

[HaiQ]

The special rule for joint owner does not apply to Solar Energy,  so I don't have to explain it?

In case they do not fix the error before April 15, should I file without Solar Energy, then amend later?

[Slhpete]

I just e filed as sole owner...no co occupant...with my portion of the credit... and then amended my return by paper noting cooccupant, no change in tax liability, and included a statement in the amended return.

[jdiek]

Unfortunately that doesn't work. I deleted everything, pulled up a blank form 5695 and the box is checked by default and can't be unchecked. Interestingly, I started a new return, pulled up 5695 and 32a is unchecked. I am sole owner and have not checked the top box on the form. I don't have joint ownership issues. I just want 32a to be unchecked.

[jdiek]

My reply was to an earlier expert response. What I was saying is that I've tried every suggestion to get 32a unchecked and nothing has worked. I'm sole owner and the top box is unchecked, but 32a is still checked and can't be changed. I've called TT twice and no one seems to know how to fix this. I'm worried that April 4 is not going to solve my problem as it seems it's only for joint ownership situations.

[jdiek]

If this helps anyone. When I deleted 5695 from forms and then tried to repopulate from the application, I could not get rid of the checked box at item 32a. However, when I revisited the Residential Energy Credits and checked no that I had none it removed that form completely. When I went back again and redid the Residential Energy Credits the box was unchecked and I was able to finish my return and have it accepted by the IRS.

[cjk420]

Yes that is how I did it and it worked.

[Jameslu100]

as of AM of 4/3, now that TT is updated and now scanning out 5695 form error.

based on the error scan, if total cost of door is $X and you paid for that amount out of your own pocket, is NOT considered sharing, regardless of other categories of improvement. It is advising me to uncheck the box on top, it also removes that painful 32a. 

[Jameslu100]

now i am stuck half way, accepted by Fed, but not by NY state, any suggestions?

[CatinaT1]

States take longer to receive acceptance from. You might have to wait a bit for that one to accept or reject.

[MJinMD]

Does anyone know if this has been corrected?

[rvdinh]

I just sent it in again this morning, so we will see soon enough if it is fixed or not!

[MJinMD]

Please let us know