The IRS published Schedule 1-A (Form 1040), Additional Deductions, along with updated instructions for Form 1040, U.S. Individual Income Tax Return, that explain how taxpayers can claim the new deductions for tips, overtime, and car loan interest, and the enhanced deduction for seniors.
Schedule 1-A does not differ from the draft version issued last year for calculating the four deductions enacted by H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act, on a single form. The instructions do provide details on how all four apply, however.
Taxpayers calculate the amount of the deductions that apply to them, add the amounts together, and include the total on line 13b of their Form 1040 or Form 1040-SR, U.S. Income Tax Return for Seniors, or on line 13c of Form 1040-NR, U.S. Nonresident Alien Income Tax Return.
The form also includes a section for calculating the taxpayer’s modified adjusted gross income, which is used in calculating phaseouts for the four deductions.
All four deductions expire after 2028.