my taxes were rejected for e filing due to Joint Occupancy on form 5695. Does anyone know what this is?

[Cshawnyurt]

Mine keeps rejecting as well for Joint Occupancy Statement and now says I can’t correct until April 5th. 

I own the home with my partner (non married, failing separately) but I paid for all the solar energy. I can prove it on my credit card. What do I do? He’s not going to file and get half, I need to claim it all but we both own the home. 

[mk84]

I'm frustrated that this issue keeps getting kicked down the road now to April 4th. With this being the 3rd time a date has been pushed back I am not confident that is will be fixed before April 15th. Not to mention I've already paid to file my taxes almost 2 months ago now. Will the price go up since I cannot submit my taxes through no fault of my own?

[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)

@kkklw 

[pcordaro]

Just to clarify, if you are married filing separate and you are the one who paid for the solar energy panels, the “energy special rule for joint occupants” does NOT apply you your situation, correct?

My wife filed separately over a month ago and did not complete a 5695 or a statement. I need to claim it all but we both own the home. This is very frustrating and I want to make sure my return doesn’t get rejected a third time. Thanks for any help you can pass along.

[AnnetteB6]

According to the IRS Form 5695 Instructions, the joint occupancy rules do not apply for married individuals filing a joint return.  That would mean that they do apply if you are filing a separate return from your spouse.  

@pcordaro  

[studiodoris]

Once TurboTax updates on 4/4, will Turbo Tax be able to generate the statement?  Or will this still need to manually filed after the 4/4 update?

[CatinaT1]

If you wait until after the update, you will not need the statement.

[LissMarie]

I'm having the same issue, I unchecked the living in the same house box and it took the credit off and won't let me enter it. How do I fix this?? 

[pcordaro]

If we are married, living together, filing separately but I am the only one who paid for the energy improvements, this box should not be checked, correct?