8 — Additional Income from Schedule 1 Updated for tax year 2025

What this line means

The total of all additional income reported on Schedule 1, Part I. This is a catch-all line for income types that do not have their own line on page 1 of the 1040 — business income from Schedule C, rental income from Schedule E, unemployment compensation, alimony received (pre-2019 agreements), gambling winnings, and other sources. The amount flows from Schedule 1, line 10.

Does this apply to you?

• You have self-employment income from a business or freelance work (Schedule C)
• You received rental income or royalties (Schedule E)
• You received unemployment compensation during the year
• You received alimony under a divorce agreement executed before 2019
• You had gambling winnings, jury duty pay, or other miscellaneous income

Easy to overlook

Unemployment compensation is fully taxable All unemployment benefits received in 2025 are taxable federal income. Many filers assume unemployment is tax-free because no tax is withheld by default. If you did not opt into voluntary withholding from your unemployment payments, you will owe tax on the full amount when you file. This catches people off guard every year. ¹ [SOURCE: IRS Publication 525 — Taxable and Nontaxable Income]

Schedule K-1 income from partnerships and S corporations If you are a partner in a business or own shares in an S corporation, your share of the entity’s income flows through to your personal return via Schedule K-1 and ends up on Schedule 1. Filers who are passive investors sometimes forget they have K-1 income because they did not actively work in the business. ² [SOURCE: CP2000 pattern — unreported Schedule 1 income sources]

Watch out for this

Forgetting to attach Schedule 1 when you have income on this line. Line 8 is just a summary number — the detail is on Schedule 1. If you enter an amount on line 8 without filing Schedule 1, the IRS has no way to verify the breakdown and will send a notice requesting the missing schedule.

Related lines on your return

• Schedule 1 — Form 1040 — Detailed breakdown of additional income and adjustments
• Line 9 — Form 1040 — Total income; line 8 is added to your wages, interest, dividends, and other income
• Schedule C — Form 1040 — Self-employment income; the net profit or loss flows to Schedule 1