Schedule 1-A - Additional Deductions

What Schedule 1-A is

Schedule 1-A (Form 1040), Additional Deductions, is a two-page form the IRS introduced for 2025 to figure four deductions created by the One, Big, Beautiful Bill: no tax on tips, no tax on overtime, no tax on car loan interest, and the enhanced deduction for seniors. The IRS says each of these applies for tax years 2025 through 2028 (IRS overview). This template is the 2025 edition, used with a 2025 Form 1040, 1040-SR, or 1040-NR. As of October 3, 2026, it is the current final version; the IRS has posted a 2026 draft that is not for filing.

The total on line 38 goes to Form 1040 or 1040-SR, line 13b (Form 1040-NR, line 13c). According to the IRS article Schedule 1-A: What to know about the new form, you can claim these deductions whether you itemize or take the standard deduction.

Who uses Schedule 1-A

Anyone who qualifies for one or more of the four deductions. The form itself sets these conditions, and the official instructions explain the details:

• Tips: qualified tips received in an occupation listed at IRS.gov/TippedOccupations. You (or your spouse) must have a valid social security number, and married taxpayers must file jointly.
• Overtime: qualified overtime compensation, with the same valid SSN and joint filing requirements. The IRS describes the deductible amount as the pay that exceeds your regular rate of pay.
• Car loan interest: interest on a loan taken out after December 31, 2024, to buy a new vehicle for personal use, secured by a lien on the vehicle. The IRS says the vehicle must have had final assembly in the United States, and you must report its VIN.
• Seniors: taxpayers born before January 2, 1961, with a valid SSN. Married taxpayers must file jointly.

What to have ready

• Your completed Form 1040 or 1040-SR through line 11b, since Part I starts from your AGI
• Forms W-2 (boxes 1, 5, and 7), Forms 1099-NEC, 1099-MISC, or 1099-K, and Form 4137 if you reported unreported tips
• Pay records showing your qualified overtime
• Your vehicle identification number and a statement of the loan interest you paid in 2025
• Form 2555 or Form 4563 amounts, or excluded Puerto Rico income, if any

How to fill out Schedule 1-A online

Click "Fill Template Now," type into each line, and download the PDF to attach to your return. The template does not compute the phase-outs, so follow the line-by-line math on the form and in the instructions. Skip any part that does not apply to you.

Part I: Modified Adjusted Gross Income (lines 1 through 3)

Line 1 is your Form 1040 line 11b. Lines 2a through 2d add back excluded Puerto Rico income and amounts from Forms 2555 and 4563. Line 3 is your MAGI, which every later part uses.

Part II: No Tax on Tips (lines 4 through 13)

Enter employee tips from Form W-2, box 7 (line 4a) and from Form 4137 (line 4b), then line 4c. Line 5 is for tips received in a trade or business. Line 7 caps the amount at $25,000. Lines 8 through 12 reduce it by $100 for each full $1,000 that MAGI exceeds $150,000 ($300,000 if married filing jointly). Line 13 is the tips deduction.

Part III: No Tax on Overtime (lines 14 through 21)

Enter overtime from Form W-2 (14a) and from Forms 1099-NEC or 1099-MISC (14b). Line 15 caps the amount at $12,500 ($25,000 if married filing jointly), and lines 16 through 20 apply the same $150,000 or $300,000 phase-out. Line 21 is the overtime deduction.

Part IV: No Tax on Car Loan Interest (lines 22 through 30)

The table on line 22 has two rows for vehicles, each with (i) the VIN, (ii) interest deducted on Schedule C, E, or F, and (iii) the Schedule 1-A amount. Line 24 caps the total at $10,000. Lines 25 through 29 reduce it by $200 for each $1,000 (or part of $1,000) that MAGI exceeds $100,000 ($200,000 if married filing jointly). Line 30 is the deduction.

Part V: Enhanced Deduction for Seniors (lines 31 through 37)

Starting from $6,000, line 34 subtracts 6% of MAGI above $75,000 ($150,000 if married filing jointly). Enter the result on line 36a for yourself and line 36b for your spouse if each qualifies, and add them on line 37.

Part VI: Total (line 38)

Add lines 13, 21, 30, and 37, and copy the result to Form 1040 or 1040-SR, line 13b.

Filing and amending

Schedule 1-A has no signature line. Attach it behind your return in attachment sequence order (it is Attachment Sequence No. 1A). Paper returns must be signed by hand on Form 1040, per the IRS instructions. On May 4, 2026, the IRS noted that final regulations on qualifying tipped occupations were released and that if you already filed a 2025 return and want to claim or change the tips deduction, you may amend it, using Form 1040-X (IRS notice).

Common mistakes

• Entering the total on Form 1040, line 12e with your standard deduction instead of line 13b.
• Rounding line 11 or 19 up, or line 28 down. The form rounds the first two down and line 28 up.
• Claiming tips, overtime, or the senior deduction on a married filing separately return.
• Leaving out the VIN on line 22.