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!!

[heatherpm83]

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?!

[CatinaT1]

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

[heatherpm83]

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. 

[Lasthouse45]

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?

[BrittanyS]

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 

[Sayed]

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:

[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.

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 

[dondino]

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

[MarilynG1]

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 

[dondino]

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

[Sayed]

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

[MarilynG1]

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 

[Sayed]

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