IRS Form 1040 Schedule 1-A 2025 PDF: Instructions, Printable & Fillable

IRS Form 1040 Schedule 1-A 2025 PDF – Are you preparing your 2025 tax return and looking to maximize your deductions? The IRS Form 1040 Schedule 1-A is a new addition for the 2025 tax year, designed to help eligible taxpayers claim specific deductions that can reduce their taxable income. Whether you’re dealing with tips, overtime pay, car loan interest, or you’re a senior taxpayer, this form could save you money. In this comprehensive guide, we’ll cover everything you need to know about IRS Form 1040 Schedule 1-A 2025, including detailed instructions, eligibility, and how to access the printable and fillable PDF.

This article is based on the latest IRS guidelines to ensure accuracy and help you file confidently.

What is IRS Form 1040 Schedule 1-A?

IRS Form 1040 Schedule 1-A, officially titled “Additional Deductions,” is a supplementary schedule attached to Form 1040 or 1040-SR. Introduced for the 2025 tax year, it allows taxpayers to claim four targeted deductions that aren’t available on the standard Form 1040 or other schedules. These deductions are applied after calculating your adjusted gross income (AGI) and can be claimed regardless of whether you take the standard deduction or itemize on Schedule A.

The key deductions include:

  • No Tax on Tips: For qualified tips received as an employee or in a trade or business.
  • No Tax on Overtime: For qualified overtime compensation under the Fair Labor Standards Act (FLSA).
  • No Tax on Car Loan Interest: For interest on loans for qualified passenger vehicles.
  • Enhanced Deduction for Seniors: An additional deduction for individuals born before January 2, 1961.

This form is particularly beneficial for service workers, hourly employees, vehicle owners, and older taxpayers. It’s part of recent tax legislation aimed at providing relief in specific areas, and it’s reported on Form 1040 line 13b (or 1040-NR line 13c).

Who Needs to File Schedule 1-A for 2025?

Not everyone needs to file Schedule 1-A—it’s only required if you’re claiming one or more of the four deductions. Here’s a breakdown of eligibility:

Deduction Key Eligibility Requirements Modified AGI (MAGI) Limits for Phaseout
No Tax on Tips – Valid SSN (not ITIN).
– Tips from customary tipping occupations (e.g., servers, bartenders).
– Limited to net business income if self-employed.
– Must file jointly if married.		 Starts at $150,000 (single) or $300,000 (joint).
No Tax on Overtime – Valid SSN.
– FLSA-eligible overtime (time-and-a-half premium for hours over 40/week).
– Excludes non-FLSA pay like holiday bonuses.
– Must file jointly if married.		 Starts at $150,000 (single) or $300,000 (joint).
No Tax on Car Loan Interest – Valid SSN.
– Loan originated after Dec. 31, 2024, for a new, U.S.-assembled personal vehicle (GVWR <14,000 lbs).
– Not for business use or leases.
– Must file jointly if married.		 Starts at $100,000 (single) or $200,000 (joint).
Enhanced Deduction for Seniors – Born before Jan. 2, 1961.
– Valid SSN.
– Available even if filing separately.		 Starts at $75,000 (single) or $150,000 (joint).

You must have a valid Social Security Number (SSN) issued by the Social Security Administration (SSA) before your return’s due date. ITINs do not qualify. If married, you generally must file jointly to claim deductions involving your spouse’s income or eligibility. Keep detailed records, such as W-2s, Form 4137, pay stubs, loan statements, and VINs for vehicles, to substantiate your claims.

If your MAGI exceeds the phaseout thresholds, your deduction may be reduced or eliminated. Use worksheets for multiple employers or businesses.

Step-by-Step Instructions for Filling Out IRS Form 1040 Schedule 1-A 2025

Schedule 1-A is divided into six parts. Start with Part I to calculate your Modified Adjusted Gross Income (MAGI), which is used for phaseouts across the form. Enter amounts only for the deductions you’re claiming. The form is fillable, so you can complete it digitally using PDF software like Adobe Acrobat.

Part I: Modified Adjusted Gross Income (MAGI)

This section calculates MAGI for determining phaseouts.

  1. Line 1: Enter your AGI from Form 1040, line 11.
  2. Line 2: Enter any deductions from Form 1040, line 12 (e.g., student loan interest).
  3. Line 3: Subtract line 2 from line 1. This is your MAGI—use it for later phaseout calculations.

If your MAGI is below the thresholds, you can claim full deductions (subject to caps).

Part II: No Tax on Tips

Claim deductions for qualified cash tips (including electronic payments).

  • Line 4a-4c: Enter qualified tips as an employee (from W-2 Box 7 or Form 4137). Use the Multiple Employers Worksheet if you have tips from more than one job.
  • Line 5: Enter qualified tips from self-employment (e.g., Schedule C). Limited to net profit per business—use the Multiple Trades Worksheet.
  • Line 7: Total qualified tips.
  • Lines 8-13: Apply phaseouts if MAGI > $150,000 (single) or $300,000 (joint). Maximum deduction: Limited by net income (no explicit overall cap, but per-business limits apply). If ≤0 after phaseout, enter 0.

Example: If you received $10,000 in qualified server tips and your net business profit is $8,000, your deduction is limited to $8,000.

Tips must be voluntary (e.g., customer-selected on a POS system) and from non-specified service businesses (SSTBs). See IRS Notice 2025-69 for transition relief on pre-2025 occupations.

Part III: No Tax on Overtime

For FLSA-eligible overtime premiums.

  • Line 14a-14b: Enter overtime from W-2 or 1099 forms. Use worksheets for multiple sources.
  • Line 15: Total overtime.
  • Lines 16-21: Calculate the “half” premium (divide total overtime by 3). Apply cap of $12,500 (single) or $25,000 (joint) and phaseout if MAGI > $150,000 (single) or $300,000 (joint).

Example: $15,000 overtime on $50,000 regular pay = $5,000 qualified premium ($15,000 / 3).

Excludes state overtime for FLSA-ineligible workers or non-premium pay.

Part IV: No Tax on Car Loan Interest (Qualified Passenger Vehicle Loan Interest – QPVLI)

  • Line 22: List VIN(s), total interest paid, and any amounts deducted elsewhere (e.g., on Schedule C).
  • Line 24: Net qualified interest (up to $10,000).
  • Lines 25-30: Apply phaseout if MAGI > $100,000 (single) or $200,000 (joint).

Vehicles must be new, U.S.-assembled, and primarily for personal use. Include VIN on your return.

Part V: Enhanced Deduction for Seniors

  • Lines 31-33: $6,000 per eligible person ($12,000 joint max).
  • Lines 34-36: Apply phaseout if MAGI > $75,000 (single) or $150,000 (joint).

Part VI: Total Additional Deductions

  • Sum deductions from Parts II-V and transfer to Form 1040, line 13b.

Cautions: Do not file if using married filing separately (except for seniors). If any line ≤0, the deduction is $0. Avoid double-dipping with other deductions.

How to Download the IRS Form 1040 Schedule 1-A 2025 Printable & Fillable PDF?

The official IRS Form 1040 Schedule 1-A 2025 PDF is available for free download from the IRS website. It’s both printable (for manual completion) and fillable (for digital entry).

For the latest updates, visit IRS.gov and search for “Schedule 1-A Form 1040.” If filing electronically, tax software like TurboTax or H&R Block will guide you through it.

Tips for Filing IRS Form 1040 Schedule 1-A 2025

  • Gather Documents Early: Collect W-2s, 1099s, Form 4137, pay stubs, loan statements, and birth certificates for seniors.
  • Use Tax Software: It automatically calculates phaseouts and worksheets.
  • Check for Errors: Double-check MAGI and VINs to avoid audits.
  • File Electronically: Faster refunds and fewer mistakes.
  • Deadlines: For 2025 taxes (filed in 2026), the due date is typically April 15, 2026. Extensions available via Form 4868.
  • Seek Help: If unsure, consult a tax professional or use IRS Free File if your income is under $79,000.

By claiming these deductions, you could significantly lower your tax bill. Always verify with the IRS for personalized advice.

For more tax resources, explore IRS.gov/forms-instructions. This guide is for informational purposes and not tax advice.