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Schedule 1-A: Additional Deductions

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Brand new for 2025 returns: Schedule 1-A is where the headline deductions from the 2025 tax law actually get claimed — qualified tips, overtime pay, car loan interest, and the enhanced deduction for seniors. Download the official form free below.

Schedule 1-A — Additional Deductions

Free · Official IRS PDF · New for 2025 · Print-ready
↓  Download Schedule 1-A (PDF) Instructions: irs.gov

What is Schedule 1-A?

Schedule 1-A, Additional Deductions, debuted for tax year 2025 to implement four new deductions created by the One Big Beautiful Bill Act: qualified tips (up to $25,000), qualified overtime compensation (up to $12,500, or $25,000 on a joint return), car loan interest on new U.S.-assembled personal vehicles (up to $10,000), and the enhanced senior deduction ($6,000 per qualifying filer 65+).

All four are available whether or not you itemize — they stack on top of the standard deduction — and each has its own income phase-outs and eligibility rules worked out in the form's parts. If you earned tips or overtime in 2025, this one form may be the biggest single tax saver on your return.

Who files Schedule 1-A?

  • Tipped workers — servers, bartenders, stylists, drivers — with reported qualified tips in occupations on the IRS's qualifying list.
  • Hourly employees with overtime — the deduction covers the premium ("half" of time-and-a-half) portion of FLSA overtime pay.
  • New-car buyers with loans on qualifying U.S.-assembled personal-use vehicles.
  • Filers 65 and older claiming the additional $6,000 senior deduction (subject to income limits).

Deadlines

Files with Form 1040 by the April deadline, starting with 2025 returns filed in 2026. These deductions are currently scheduled to run for tax years 2025 through 2028 unless Congress extends them.

How to fill out Schedule 1-A

  1. Confirm eligibility for each deduction

    Each part has its own rules — occupation lists for tips, FLSA definitions for overtime, vehicle assembly and loan-date rules for car interest, age 65+ for the senior deduction.

  2. Gather the reporting documents

    Tips and overtime amounts come from your W-2 (with new box codes) or payer statements; car loan interest from your lender's statement.

  3. Work each part's limit and phase-out

    Each deduction caps at its statutory maximum and phases out above the income thresholds printed on the form.

  4. Total onto your 1040

    The combined Schedule 1-A deduction reduces taxable income on top of your standard (or itemized) deduction.

  5. Keep the records

    Occupation, hours, and loan documentation back the claim if the IRS asks.

Schedule 1-A — frequently asked questions

It's a deduction, not an exclusion: up to $25,000 of qualified tips are deducted from taxable income, phasing out at higher incomes. Tips remain subject to Social Security and Medicare payroll taxes, and amounts above the cap are still income-taxed.
It covers the premium portion of overtime — the extra "half" in time-and-a-half required by the FLSA — up to $12,500 ($25,000 joint), with income phase-outs. Your W-2 reporting identifies the qualified amount.
Filers 65 or older by year-end, with modified AGI under the phase-out thresholds — each qualifying spouse on a joint return can claim it, on top of the regular additional standard deduction for age.
No — that's the point of it. All four deductions are available to standard-deduction filers and itemizers alike.

Related IRS forms

Schedule 1Additional Income and Adjustments to IncomeForm 1040U.S. Individual Income Tax ReturnSchedule AItemized DeductionsForm W-4Employee's Withholding Certificate

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Important: BizDocs is not affiliated with or endorsed by the Internal Revenue Service. The forms offered on this page are official, unmodified IRS documents provided free as a public resource; the IRS publishes them in the public domain at irs.gov. The guides on this page are general information, not tax or legal advice — tax rules change and depend on your situation, so verify details in the official IRS instructions or with a qualified tax professional before filing.