What Schedule 1-A is

Schedule 1-A (Form 1040), titled “Additional Deductions,” is a form the IRS introduced for the 2025 tax year. It exists to hold the four new deductions from the 2025 tax law in one place. The important thing to know up front: all four are above-the-line style — they work whether you take the standard deduction or itemize, so most filers can claim them without changing anything else about their return. The total from the schedule flows to Form 1040, line 13b.

Form
Schedule 1-A (Form 1040), "Additional Deductions"
New For
Tax year 2025 (first filing season 2026)
Part I
Modified adjusted gross income (MAGI)
Parts II–V
Tips · Overtime · Car-loan interest · Senior
Flows To
Form 1040, line 13b
Itemizing Required?
No — all four work with the standard deduction

How the form is organized

Part I sorts out your modified adjusted gross income, because every one of these deductions phases out at higher incomes. After that, you complete only the parts that apply — you do not touch a part for a deduction you are not claiming.

Part IIQualified tipsUp to $25,000

For reported tips earned in an occupation on the IRS list at IRS.gov/TippedOccupations. Requires a valid SSN; married filers must file jointly.

Part IIIQualified overtimeUp to $12,500 / $25,000 joint

The FLSA premium — the extra "half" of time-and-a-half only. On the form it is the overtime figure minus the straight-time portion, not the whole overtime check.

Part IVCar loan interestUp to $10,000

Interest on a loan originated after Dec 31, 2024, secured by a first lien on a personal-use passenger vehicle with final assembly in the U.S. Requires the vehicle VIN.

Part VEnhanced senior deduction$6,000 / $12,000 per couple

For taxpayers 65 or older by year-end, each with a valid SSN. Up to $6,000 per person, $12,000 if both spouses on a joint return qualify.

— The part people get wrong —

Part III (overtime) deducts the premium — the extra half of time-and-a-half — not your whole overtime pay. On the form it's your overtime figure minus the straight-time portion. Work $15,000 of time-and-a-half and the deduction is about $5,000, not $15,000. Because that number isn't printed on most pay stubs, it's the single most-missed entry on the form.

How to claim it, step by step

  1. Finish your Form 1040 through AGI as usual, then complete Part I of Schedule 1-A to confirm your MAGI.
  2. Work through only the parts that apply to you — tips, overtime, car-loan interest, and/or the senior deduction.
  3. Total them on the schedule and carry the amount to Form 1040, line 13b.
  4. Keep your substantiation — W-2, final pay stub, lender statement and VIN, proof of age — in case the IRS asks.

If your return already skipped it

This form is new, and a lot of 2025 returns were filed without it. If you qualified for a deduction and left it off, you don't lose it — an amended return (Form 1040-X) adds the Schedule 1-A and the IRS refunds the difference, generally within 8–16 weeks. You have roughly three years from when you filed to claim it. Not sure whether your return included it? The check-your-return guide shows you where to look.

General information on the 2025 federal rules (P.L. 119-21), not tax advice. Form mechanics can change as the IRS finalizes instructions; a licensed professional confirms your eligibility and amounts from your actual documents before filing.