Will Turbo Tax provide FREE RAPID REFUND PROCESSING to all customers who’ve had their returns REJECTED by the IRS due Turbo Tax’s system coding issue associated to the Joint Occupancy on Form 5695?

[bluepig2020]

Since JANUARY 2025 I have NOT been able to successfully file my Turbo Tax IRS Return since the IRS continues to REJECT my return due to TURBO TAX’S on-going SYSTEM ISSUE associated to the Joint Occupancy on Form 5695. Originally the Turbo Tax Message stated the Joint Occupancy on Form 5695 system issue would be fixed on 03/17/2025.  It has now been pushed back to 03/27/2025. This is unacceptable.  Taxes are due to the IRS no later than 04/15/2025.

1. Will Turbo Tax provide FREE RAPID REFUND PROCESSING to all customers who’ve had their returns REJECTED by the IRS due Turbo Tax’s system coding issue associated to the Joint Occupancy on Form 5695?  I should not have to pay for this service.  Nor should I have to use a chat feature or the like to request this.  As a paying customer the company *should* AUTOMATICALLY APPLY RAPID REFUND PROCESSING FOR FREE WITH THE SYSTEM DEFECT RESOLUTION.  (This can be done via system coding!)
2. System application coding DEFECTS are typically resolved immediately as a critical priority. Typical IT Project Management Agile practices require critical system defects to be resolved within a 2-week time period.  This Turbo Tax system issue has been effective since day 1 of the 2025 filing period beginning in JANUARY 2025!
3. I will NOT file a paper return.  Manual entries on my behalf will more than likely be incorrect.  This is why, as a paying customer, I purchased Turbo Tax to begin with: For a user-friendly application to ensure all my IRS information is correctly reported with in my tax return forms & they are submitted electronically to the IRS.  Correcting a printed Turbo’s Tax’s Return and mailing in a paper form to the IRS is not an acceptable option/resolution on behalf of the Turbo Tax Company. See Turbo Tax Error Resolution message below.
4. To add insult to injury here, I received an email on 03/14/25 from Turbo Tax with the subject line of “CRITICAL REMINDER: Your tax return needs to be corrected and re-filed.” This email got my hopes up that the system issue was resolved sooner rather than later.  However, it’s just a standard system generated email reminder to “Don’t forget about your rejected return! We want to help you get your taxes filed on time.”  How frustrating to receive this email where the system issue is still not resolved AND I’ve been waiting since JANUARY 2025!
5. At this point, it’s probably best to purchase a competitors Tax Return application this year – with more out of pocket $ on my part. Or maybe even try out the IRS’s Free Tax Return service.

“Let's fix your return and then refile. Your federal return was rejected for the following reasons. Don't worry, we'll help you fix it. Federal return rejection: This return cannot currently be processed for e-filing due to Joint Occupancy on Form 5695Reject Code 5695_Joint_Occupancy” “Description of error: This return cannot currently be processed for e-filing due to Joint Occupancy on Form 5695

What needs to be done: This return was not e-filed 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 do not want to wait until March 17, you may print the return and file by mail.”

[RachelW33]

We understand your frustration, but this is actually an IRS issue, not a problem with the TurboTax software.  Please see IRS Known Issues and Solutions.  Click on the 2024 link and the Form 5695 Joint Occupancy issue is Row 55 of the spreadsheet.

[smh6966]

You say that this is an IRS issue and not a TurboTax issue, it's also not the taxpayer's fault that a form isn't ready for use.  And it's not the taxpayer's fault for refiling on the dates that TurboTax provides for when the form will be available.  TurboTax stated 3/17/25 and not until after I filed again on 3/17 and paid the additional $25 to file, do I then receive a notification that the submittal is rejected and only then does TurboTax provide the new 3/27/25 date for the Form 5695.  So how is this not a TurboTax issue when TurboTax is the one communicating the date to the taxpayer (and customer of Turbotax)?  

[bluepig2020]

As of 03-27-2025 IRS Tax Return is still being Rejected for Form 5695 Error:

Federal return rejection: This return can not currently be processed for e-filing due to Joint Occupancy on Form 5695Reject Code 5695_Joint_Occupancy.

Let's take a look at your return

Description of error:

This return can not currently be processed for e-filing due to Joint Occupancy on Form 5695

What needs to be done:

This return was not e-filed 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 do not want to wait until March 27, you may print the return and file by mail.

[CatinaT1]

Please wait until later today or tomorrow for the update to take place.

[bluepig2020]

03-28-2025- Still rejected and the error message directions states the issue will not be fixed until 04-04-2025!!

Let's take a look at your return

Description of error

This return can not currently be processed for e-filing due to Joint Occupancy on Form 5695

What needs to be done:

This return was not e-filed due to a processing issue on Form 5695, Residential Energy Credits and the associated Joint Occupancy Statement. Resolution of this issue is scheduled for April 4, 2025. On or after April 4, 2025, open the rejected return, review it for errors, and resubmit the return for electronic filing.

[AnnetteB6]

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)

@bluepig2020 

@smh6966