What Is Schedule 1-A? The New IRS Tax Form Explained
Schedule 1-A is where you claim all four new deductions from the One Big Beautiful Bill. Over 53 million Americans have used it. Here is what each part does.
Schedule 1-A is a brand new IRS form that was created for the 2025 tax year. You attach it to your Form 1040 when you file. It is the single place where you calculate and claim the four new deductions: no tax on tips, no tax on overtime, car loan interest, and the senior deduction. You can use it whether you itemize or take the standard deduction.
Why it exists
The One Big Beautiful Bill Act created four new above-the-line deductions. Instead of scattering them across existing forms, the IRS put them all on one new schedule. The total from Schedule 1-A flows back to your Form 1040 and reduces your taxable income. These deductions work on top of your standard deduction, not instead of it.
The five parts of Schedule 1-A
Part I: Your income
You enter your Modified Adjusted Gross Income here. This number determines whether any of your deductions get reduced by the income phase outs. Every other part of the form uses this number.
Part II: No tax on tips
Enter your qualified tips from your W-2 box 12 code TP, or from your 1099 forms if you are self employed. The cap is $25,000 per return. If your income is above $150,000 single or $300,000 married, the deduction shrinks. Your job must be on the IRS list of tipped occupations. Use our tips calculator to estimate your number before you file.
Part III: No tax on overtime
Enter your qualified overtime premium from W-2 box 12 code TT. This is only the extra half of time and a half, not your total overtime pay. The cap is $12,500 single or $25,000 married filing jointly. The overtime must be required by the FLSA. Use our overtime calculator to check your savings.
Part IV: No tax on car loan interest
Enter the interest you paid on a qualified car loan and your vehicle's VIN. You need your lender's interest statement or Form 1098-VLI. The car must be new, US assembled, for personal use, and bought after December 31, 2024. The cap is $10,000 of interest. Use our car loan calculator with VIN check to verify your car qualifies.
Part V: Senior deduction
If you or your spouse are 65 or older, enter the $6,000 deduction per qualifying person. The phase out starts at $75,000 single or $150,000 married. Use our senior deduction calculator to see your amount after the phase out.
Where to find your numbers
| Deduction | Where to look |
|---|---|
| Tips | W-2 box 12 code TP (2026+), or your own tip records (2025) |
| Overtime | W-2 box 12 code TT (2026+), or pay stubs (2025) |
| Car loan interest | Form 1098-VLI (2026+), or lender statement (2025) |
| Senior deduction | $6,000 per person age 65+, no form needed |
For the 2025 tax year, the new W-2 codes and Form 1098-VLI were not required yet. Employers could report the amounts in box 14 or not at all. If your 2025 W-2 is missing the codes, use your own pay stubs and records. Read more about the new W-2 codes TP and TT.
Schedule 1-A is not Schedule 1
These are different forms. Schedule 1 (Additional Income and Adjustments) has existed for years and handles things like student loan interest and alimony. Schedule 1-A (Additional Deductions) is brand new and only handles the four OBBBA deductions. You can file both on the same return.
Can you claim more than one deduction?
Yes. A server who works overtime, is over 65, and bought a new car could claim all four deductions on the same Schedule 1-A. Each part is independent. The deductions stack.
Know your numbers before you file
Every calculator on this site matches a part of Schedule 1-A. Run your numbers now so you know what to expect:
Tips deduction calculator (Part II) | Overtime calculator (Part III) | Car loan + VIN check (Part IV) | Senior deduction calculator (Part V)
Frequently asked questions
What is Schedule 1-A?
Schedule 1-A is a new IRS form for claiming the four tax deductions created by the One Big Beautiful Bill: tips, overtime, car loan interest, and the senior deduction. You attach it to your Form 1040.
Do I need to itemize to use Schedule 1-A?
No. These deductions work whether you itemize or take the standard deduction. They are above-the-line deductions that reduce your adjusted gross income.
How long does Schedule 1-A last?
The four deductions apply to tax years 2025 through 2028. Schedule 1-A will be used during those years.
Where can I get Schedule 1-A?
Download it from IRS.gov. Tax software like TurboTax, H&R Block, and TaxAct includes it automatically. If you use a tax preparer, they will fill it out for you.