IRS Reject Code F5695-037

Reject Code: F5695-037
If Form 5695, 'InsulationOrSysHtStdPctCrAmt' or 'TotalExtrDoorsCreditAmt' or 'ExtrWndwSkylightStdPctCrAmt' has a value greater than zero, then 'HomeLocatedInUSAInd' and 'OriginalUserInd' and 'FiveYearUseExpectationInd' must all have a choice of "Yes" indicated and 'ImprvRltdToConstMainHomeInd' must have a choice of "No".

An individual tax return that includes Form 5695 will get this reject if the improvements are indicated as being both for new construction and existing construction.

To correct this reject, from the Main Menu of the tax return (Form 1040) select:

• Credits
• Residential Energy Credits
• Qualified Energy Efficiency Improvements Costs - There are four check boxes in this menu and most likely the first and last are both checked in error:
  • First: Qualified Improvements Installed in or on Your Main Home in the U.S.
  • Last: Improvements Related to the Construction of this Main Home.
  If the improvements were to existing construction check the first box and ensure the last box is unchecked. If the improvements were to new construction, check the last box and ensure the first box is unchecked.

Note that the second check box (for the taxpayer being the original user) and the third check box (related to a useful life of at least 5 years) are unrelated to this reject, so there's no need to change them if they are correct.

Additional Information

IRS: Form 5695 instructions