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Level 1
posted Feb 8, 2025 10:44:52 AM

Why was my refund was rejected due to processing error 5695_Joint_Occupancy, and why can't I fix it now? This is Turbo Tax's error!!

When I went back to look at the form, it appears a lot of sections were entered that I was NEVER asked when going through the process. I did not file joint occupancy as I was NEVER asked about joint occupancy, I also noticed that it answered whether or not the energy improvement was to my main home as NO, which is NOT what I entered at all. I cannot fix this myself as it only brings me to the page that this will be fixed by 3/17, does that mean if i wait till then i can just re-file? This went all the way through the checks and balances and told me everything was good only to have me refund rejected and told i have to wait another 45 days until it's fixed. How is this acceptable when I have already paid over 100.00 to even file?!

2 17 4383
1 Best answer
Expert Alumni
Mar 15, 2025 12:46:50 PM

You can fix a Joint Occupancy error with Form 5695 for the Energy Credit through the interview mode or in Forms mode, if you're using the desktop version.

 

In the interview, say NO to Joint Occupancy (this applies to living with others beside your spouse).  On Form 5695, uncheck the box at the top of the form.

 

This has been a documented IRS error with this form for some time. 

 

Bottom line:  if you're not choosing  JOINT OCCUPANCY, YOU CAN EFILE NOW.. IT'S JOINT OCCUPANCY THAT IS THE ISSUE.  DON'T SAY YES TO JOINT OCCUPANCY IF YOU'RE MARRIED FILING JOINTLY. 

 

@dondino 

 

17 Replies
Expert Alumni
Feb 11, 2025 8:14:14 AM

The IRS says if you want to file prior to the 3.16.25 date you can paper file.

 

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

Level 1
Feb 11, 2025 9:52:30 AM

The thing is, is rhat I didn't file joint occupancy. That wasn't even an option as a selection when going through the process for the energy credit through the TurboTax system but was autfillled after the fact and I only know this from going back and looking at the physical PDFs of my forms post rejection. It also filled in a ton of other information that was not what was selected or not asked, period. 

My TurboTax says it was a processing error that will be fixed on 3/17. So when I click on "fix my return" that's all it brings me to. A screen that says it's a processing error and won't be fixed until 3/17 and on or after I can go in and refile. If I wanted to mail it I could sooner but then I also just paid over 100.00 out of pocket for turbo tax to e-file already. 

Level 1
Mar 3, 2025 9:58:25 AM

I did not enter the joint occupancy and find this to be unacceptable after paying over $100.00 to your site.

And I can't even get on the site to correct it. First it Said 3/17 and now it says 3/27. This is unacceptable and I will not be using your program in the future.  Has anyone else gotten an actual response?

 

Expert Alumni
Mar 4, 2025 2:40:41 PM

If you did not mean to select joint occupancy on form 5695, you can change the selection in TurboTax by following these steps:

 

  1. Sign into TurboTax
  2. Select Deductions and Credits
  3. Select edit next to Home Energy Credit
  4. Select No for the question "Do you share ownership of your home with another person."  (See screenshot below)

@Lasthouse45 

Level 2
Mar 9, 2025 12:07:29 PM

Yes, I also saw the same thing with the dates. Initially, the date was March 17. Now it reads March 27. What date should I follow? Also, there is no date for state fillings either. Should I follow the same date for state and federal? This is what I see below for federal and state:

Expert Alumni
Mar 9, 2025 2:56:02 PM

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.

 

Once this issue is fixed with the IRS, you should be able to electronically file your state return.  

 

Known issues and solutions | Internal Revenue Service

 

@Sayed 

Level 1
Mar 15, 2025 12:23:38 PM

Both you and TurboTax have the same dates.  So, what is it, March 17th or March 27th?  Beyond frustrating.

Expert Alumni
Mar 15, 2025 12:46:50 PM

You can fix a Joint Occupancy error with Form 5695 for the Energy Credit through the interview mode or in Forms mode, if you're using the desktop version.

 

In the interview, say NO to Joint Occupancy (this applies to living with others beside your spouse).  On Form 5695, uncheck the box at the top of the form.

 

This has been a documented IRS error with this form for some time. 

 

Bottom line:  if you're not choosing  JOINT OCCUPANCY, YOU CAN EFILE NOW.. IT'S JOINT OCCUPANCY THAT IS THE ISSUE.  DON'T SAY YES TO JOINT OCCUPANCY IF YOU'RE MARRIED FILING JOINTLY. 

 

@dondino 

 

Level 1
Mar 15, 2025 3:14:24 PM

Gotcha. Issue is I live with my fiancé and we are both financially responsible for the house. 

Level 2
Mar 15, 2025 3:18:24 PM

What if I live with a parent and I paid for all the home improvements? Thank you in advance. 

Expert Alumni
Mar 15, 2025 3:27:17 PM

If you own the home jointly with another person and are filing separate returns, you are each legally entitled to half the credit.  However, you can agree between you who is going to claim the credit on their return, or you can each claim half on your separate returns.

 

If you don't indicate Joint Occupancy, one of you can Efile and claim the credit now.  Otherwise, you will need to wait until March 23 (approx.) to file when the Joint Occupancy details are resolved by the IRS. 

 

@dondino 

 

 

Level 2
Mar 15, 2025 3:51:39 PM

Yes, my mother and I own the home jointly.  We both agreed I will claim 100% of the credit.

Just to clarify, I have to wait for March 27 to efile. My mother can efile right now because I claimed 100% of the credit. Is that correct? Thank you. 
@MarilynG1 

Level 1
Mar 17, 2025 9:56:11 AM

I have been having the same issue since the beginning of February. Turbo tax accepted my payment for my return that I am unable to file, rejected now multiple times. I spent quite a bit of time with a customer service rep back in February on the phone who seemed baffled by the issue, was not able to assist, and advised me to wait until 3/17 to file. Here we are on 3/17, same issue. Did the customer service thing again, told now to wait until 3/27. I left a note with customer service that if not resolved by 3/27 I will be requesting a refund, no longer using turbo tax in the future, and hoping an accountant can get me in by the tax deadline which is now quickly approaching.

Expert Alumni
Mar 18, 2025 9:33:53 AM

No, neither you or your mother needs to wait to efile.  Since you are claiming 100% of the deduction on your return then you can just not check the joint occupancy box and take the full deduction and you'll be able to file.  Your mother won't even get the question since she is not entering any information about the home into her return so she can just file as well.

 

@Sayed 

Level 1
Mar 29, 2025 12:39:21 PM

We've followed the instruction and it still errors out with same.

 

Intuit says fixed on 27th March. Nope. But now it will not fixed until April 4th. That's the 3rd push. They should refund the e-file payment to all involved.

 

This is not resolved.

Expert Alumni
Mar 30, 2025 4:03:55 AM

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)

 

New Member
Apr 2, 2025 4:27:53 PM

I've been trying to file my return for two months now.  The "fix" was promised for 3/17, then 3/27, now 4/4?

 

I share a home with my fiance, I paid for the solar system and want the full credit.  I've called Turbo Tax a couple of times, and don't get answers.  I finally got to someone who was very nice, and is looking into it, but nothing yet.

 

Now you are telling us you won't provide a pop up statement to fill in and attach to the return so it can be filed electronically?  If that has been the case you should have told us in February and I would have mailed the return then and maybe got the credit by now.

 

The mail service is terrible since Covid, mail is lost and never delivered and that is becoming common place with our postal "service".

 

I paid for Turbo tax so I could prepare my return and e file it.  I expect a full refund or at a minimum a credit for 2025 Premier!

 

I have spent hours and hours on this, filing rejected returns, calling Turbo Tax, etc.  This is completely unacceptable.  Anyone that invested in Solar last year and is having these issues should be refunded and told clearly and honestly IF a fix will be made and when or to mail their return now.  April 15 is fast approaching.

 

Kick this up to someone in upper management that is empowered to take action!

 

Eric Petersen