Updated November 5, 2026. Quick answer: Schedule 1-A is the 2025 attachment to Form 1040, 1040-SR or 1040-NR where four deductions are figured: qualified tips, qualified overtime compensation, qualified passenger vehicle loan interest and the enhanced deduction for seniors. It has six parts. Part I builds one income number (line 3) that Parts II to V use to reduce their deductions, and Part VI adds the four deductions on line 38, which goes on Form 1040 or 1040-SR line 13b or Form 1040-NR line 13c.
For what changed on the 2026 draft of the schedule, see Schedule 1-A 2026 changes.
What the schedule is for
The Instructions open with the purpose: “Use Schedule 1-A to report additional deductions that can’t be entered directly on Form 1040, 1040-SR, or 1040-NR.” Two points settle the usual first question. “You can claim these deductions whether you claim the standard deduction or itemize deductions on Schedule A or Schedule A (Form 1040-NR).” The deductions are named in one sentence: “These additional deductions are deductions for qualified tips, qualified overtime compensation, no tax on car loan interest, and the enhanced deduction for seniors.” The total lands on Form 1040 line 13b. The line 13 page is Form 1040 line 13: QBI and additional deductions.
The six parts at a glance
| Part | Title on the schedule | Lines | Largest deduction | Income limit |
|---|---|---|---|---|
| I | Modified Adjusted Gross Income (MAGI) Amount | 1 to 3 | No deduction; line 3 feeds Parts II to V | none |
| II | No Tax on Tips | 4 to 13 | Up to $25,000 of qualified tips, any filing status | Reduced above $150,000 ($300,000 married filing jointly) |
| III | No Tax on Overtime | 14 to 21 | Up to $12,500 ($25,000 married filing jointly) of qualified overtime compensation | Reduced above $150,000 ($300,000 married filing jointly) |
| IV | No Tax on Car Loan Interest | 22 to 30 | Up to $10,000 of qualified passenger vehicle loan interest | Reduced above $100,000 ($200,000 married filing jointly) |
| V | Enhanced Deduction for Seniors | 31 to 37 | $6,000 per person | Reduced above $75,000 ($150,000 married filing jointly) |
| VI | Total Additional Deductions | 38 | Adds lines 13, 21, 30 and 37 | none |
The caps and thresholds above are the ones printed on the lines themselves (7, 9, 15, 17, 24, 26, 32 and 35). Each part has its own page: Part I, lines 1 to 3, Part II, lines 4 to 13, Part III, lines 14 to 21, Part IV, lines 22 to 30 and Part V and Part VI, lines 31 to 38.
Who has to look at which part
The schedule does not ask you to fill out every part. Each part opens with its own caution. Part II says “Fill out Part II only if you received qualified tips.” Part III says “Fill out Part III only if you received qualified overtime compensation.” Part IV says “Fill out Part IV only if you, or your spouse if married filing jointly, paid or accrued qualified passenger vehicle loan interest (QPVLI).” Parts II, III and V also carry a marriage rule: “If married, you must file jointly to claim this deduction.” Part IV’s caution has no joint-return sentence, so read the Instructions for Part IV before you assume the same rule applies there.
Parts II, III and V also require a valid social security number: “You and/or your spouse who received qualified tips must have a valid social security number to claim the deduction.” Part V words it “You and/or your spouse must have a valid social security number.”
How the income limit works in every part
Part I produces your MAGI on line 3, and each part later says “Enter the amount from line 3” (lines 8, 16, 25 and 31). A threshold is subtracted from it, and when the result is above zero the deduction shrinks in steps. In Parts II and III the step is “Divide line 10 by $1,000. If the resulting number isn’t a whole number, decrease the result to the next lower whole number.” and each step costs “Multiply line 11 by $100”. Part IV rounds the other way, “increase the result to the next higher whole number”, and each step costs “Multiply line 28 by $200”. Part V uses a flat “Multiply line 33 by 6% (0.06)” instead of steps. The rounding direction matters: one dollar over the threshold costs nothing in Parts II and III and the first $200 in Part IV.
Line 38 and where it goes
Part VI has one line. “Add lines 13, 21, 30, and 37. Enter here and on Form 1040 or 1040-SR, line 13b, or on Form 1040-NR, line 13c”. The Form 1040 Instructions repeat it under line 13b: “enter on line 13b the amount, if any, from Schedule 1-A, line 38.” For car loan interest, estates and trusts have their own worksheet: “If you are filing a tax return on Form 1041 for an estate or trust and intend to claim the deduction for car loan interest, see the “No Tax on Car Loan Interest” worksheet in the Instructions for Form 1041.”
A worked pass through all six parts
Illustration, not an IRS example. Every result below is computed from invented inputs. An invented single filer has adjusted gross income of $158,500 on Form 1040 line 11b, $4,000 of excluded Puerto Rico income, $18,000 of qualified tips (the Instructions’ own restaurant-server figure), $5,000 of qualified overtime (a third of the Instructions’ own $15,000 overtime pay, the divide-by-three rule), a valid social security number, and a birth date before January 2, 1961. The invented car loan interest used in the computed results is $3,200.
| Line | Entry | Amount |
|---|---|---|
| 3 | MAGI: $158,500 plus $4,000 (computed) | $162,500 |
| 13 | Qualified tips deduction (computed) | $16,800 |
| 21 | Qualified overtime compensation deduction (computed) | $3,800 |
| 30 | Qualified passenger vehicle loan interest deduction (computed) | $0 |
| 37 | Enhanced deduction for seniors (computed) | $750 |
| 38 | Add lines 13, 21, 30 and 37 (computed) | $21,350 |
The car loan interest deduction falls to $0 here because MAGI is $62,500 over the $100,000 threshold, which is 63 steps of $200 or $12,600, more than the $3,200 of interest. The other three parts only shrink. Each part page shows its own lines.
Related deduction pages
The year-by-year figure pages explain the deductions in plain language: tips, overtime, car loan interest and the senior deduction. The three worksheets the Instructions attach to Parts II and III are tips from more than one employer, multiple trades or businesses and overtime from more than one employer. This page is the map; the part pages are the line-by-line walk.
Edition
This page reads Schedule 1-A (Form 1040) for 2025 and the Instructions for Form 1040 (2025), the files irs.gov served on 2026-11-05 (sha256 in the kit data). Line numbers belong to that edition, so check the label printed on the schedule in your own copy before you follow a line reference.
Common mistakes
- Filling out a part whose caution does not apply. Each part says to fill it out only if you received the income or paid the interest.
- Treating line 38 as a credit. It is a deduction added to Form 1040 line 13b, so it lowers taxable income, not tax directly.
- Assuming the standard deduction rules it out. The Instructions say the deductions are available whether you take the standard deduction or itemize.
- Mixing up the rounding. Parts II and III round the thousands down, Part IV rounds up, and Part V uses 6% instead.
- Using the 2025 line numbers on a later form. Check the label printed on your own copy.
Related: Form 1040 line 13, Form 1040 lines 14 and 15, and standard deduction 2025.
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Answer againSources
- Schedule 1-A (Form 1040), Additional Deductions (2025): https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf
- Instructions for Form 1040 (2025), including the Instructions for Schedule 1-A: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
Read from the IRS documents linked above on November 5, 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.