Updated November 7, 2026. Quick answer: The early-release draft of the 2026 Schedule 1-A (Form 1040) keeps the same dollar limits as the 2025 form ($25,000 for tips, $12,500 or $25,000 for overtime, $10,000 for vehicle loan interest, $6,000 for the senior deduction) but rebuilds Parts II and III: qualified tips and overtime are now listed employer by employer, in tables of up to five lines each, so every later line moves. Part IV also adds two yes-or-no questions for each vehicle. The total is line 44 (it was 38) and it goes to Form 1040 line 13a (it was 13b).
Parts II and III: tables replace single lines
| Item | 2025 form | 2026 draft |
|---|---|---|
| Tips from an employer | Line 4a (Form W-2, box 7), 4b (Form 4137) and 4c (the larger) | Line 4 is a table with rows 4a to 4e by employer; line 5 reads “Add lines 4a through 4e, column (v)” |
| Tips from your own business | Line 5, one amount | Line 6 is a table with rows 6a to 6e; line 7 reads “Add lines 6a through 6e, column (xiii)”; line 8 reads “Add lines 5 and 7” |
| Tips limit | Line 7: smaller of line 6 or $25,000 | Line 9: smaller of line 8 or $25,000 |
| Overtime | Line 14 (14a, 14b, 14c) | Lines 16 to 20: a W-2 table (16a to 16e) and a Form 1099 table (18a to 18e) |
| Overtime limit | Line 15: smaller of line 14c or $12,500 ($25,000 if married filing jointly) | Line 21: smaller of line 20 or $12,500 ($25,000 if married filing jointly) |
The 2026 tables ask for the employer’s name and identification number and, for tips, a column for the Form W-2 box 12 code. The 2025 form asked for totals only.
Parts IV and V: same limits, new numbers and new vehicle questions
| Item | 2025 form | 2026 draft |
|---|---|---|
| Vehicle loan interest limit | Line 24: smaller of line 23 or $10,000 | Line 30: smaller of line 29 or $10,000 |
| Senior deduction | Line 33 to 35: subtract, multiply by 6% (0.06), subtract from $6,000 | Line 39 to 41: the same steps with the same figures |
| Age box | Line 36a: “born before January 2, 1961” | Line 42a: “born before January 2, 1962” |
| Total | Line 38: add lines 13, 21, 30 and 37; enter on Form 1040 line 13b | Line 44: add lines 15, 27, 36 and 43; enter on Form 1040 line 13a (the draft names line 13a for Forms 1040, 1040-SR and 1040-NR alike; the 2025 form gave Form 1040-NR line 13c) |
Part IV is also not only renumbered. For each vehicle on lines 28a and 28b the 2026 draft asks two questions the 2025 form did not print: “Did the original use of this vehicle start with you, or your spouse if married filing jointly (a used vehicle does not qualify)?” and “Did final assembly of this vehicle occur within the United States (see instructions for information on how to determine final assembly)?” Each has Yes and No boxes. The Part IV caution also adds “Certain vehicle loan interest paid in 2026 should be reported to you on Form 1098-VLI, box 1.”
The income levels that start each phase-out ($150,000 or $300,000 for tips and overtime, $100,000 or $200,000 for vehicle loan interest, $75,000 or $150,000 for the senior deduction) are printed the same on both forms.
What this page cannot tell you
- The draft has not been through OMB approval; the IRS cover sheet says “Do not file draft forms.” Check the final form before you file.
- The 2026 Schedule 1-A instructions were not among the documents read, so who qualifies for each deduction is not described here.
- This page lists the changes that alter a line’s meaning or number. It does not list changes in punctuation or layout.
Edition
This page compares the IRS early-release draft of the 2026 Schedule 1-A (Form 1040, created June 16, 2026) with the 2025 Schedule 1-A final, retrieved on November 7, 2026. The 2026 documents are early-release drafts. The IRS says of such drafts: “We incorporate all significant changes to forms posted with this coversheet.” A draft can still be replaced before the final form is released, so check the final form before you rely on a line number.
Common mistakes
- Looking for the total on line 38. On the 2026 draft the total is line 44.
- Sending the total to Form 1040 line 13b. The 2026 draft sends it to line 13a.
- Entering one combined tips figure. The 2026 draft asks for each employer on its own row.
Related: Schedule 1-A, tips deduction 2026, and overtime deduction 2026.
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Answer againSources
- IRS draft Schedule 1-A (Form 1040) for tax year 2026 (early release draft, irs.gov/pub/irs-dft): irs.gov (PDF)
- IRS Schedule 1-A (Form 1040) for tax year 2025 (final, irs.gov/pub/irs-prior): irs.gov (PDF)
Read from the documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.