Schedule 1
Schedule 1
Additional Income and Adjustments to Income
Every line is explained below in plain English — click any line to see what it means, who needs to fill it in, and what people commonly overlook.
Additional Income
- 1 Taxable Refunds of State and Local Income Taxes The taxable portion of any state or local income tax refund, credit, or offset you received during the year.
- 2a Alimony Received Alimony or separate maintenance payments you received under a divorce or separation agreement executed before January 1, 2019.
- 3 Business Income or Loss Your net profit or loss from Schedule C (Profit or Loss From Business).
- 4 Other Gains or Losses Gains or losses from the sale or exchange of business property, reported on Form 4797, and casualty or theft losses of business or income-producing...
- 5 Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts The total income or loss from Schedule E, which covers rental real estate, royalties, partnerships, S corporations, estates, and trusts.
- 6 Farm Income or Loss Your net profit or loss from Schedule F (Profit or Loss From Farming).
- 7 Unemployment Compensation The total unemployment compensation you received during the year, as reported on Form 1099-G. All unemployment benefits are taxable federal income,...
- 8a Net Operating Loss A net operating loss (NOL) deduction carried forward from a prior year.
- 8b Gambling Income All gambling winnings for the year, including casino games, lottery, sports betting, horse racing, poker tournaments, raffles, and bingo.
- 8c Cancellation of Debt The taxable portion of any debt that was cancelled, forgiven, or discharged during the year.
- 8r Scholarship and Fellowship Grants The taxable portion of scholarship or fellowship grants that was not reported on a Form W-2.
- 8z Other Income A catch-all line for taxable income that does not belong on any other specific line of Schedule 1. You must list the type and amount of each income source.
- 9 Total Other Income The sum of lines 8a through 8z.
- 10 Total Additional Income The sum of lines 1 through 7 and line 9.
Adjustments to Income
- 11 Educator Expenses An above-the-line deduction for unreimbursed expenses paid by eligible K-12 educators for classroom supplies, books, equipment, and computer software.
- 12 Reservist, Performing Artist, and Fee-Basis Government Official Expenses An above-the-line deduction for unreimbursed business expenses available to three specific groups of employees: Armed Forces reservists who travel more...
- 13 Health Savings Account Deduction Your deductible contributions to a Health Savings Account (HSA), calculated on Form 8889.
- 14 Moving Expenses for Members of the Armed Forces The deductible moving expenses for active-duty members of the Armed Forces who move due to a military order for a permanent change of station (PCS).
- 15 Deductible Part of Self-Employment Tax Half of the self-employment tax you calculated on Schedule SE.
- 16 Self-Employed SEP, SIMPLE, and Qualified Plans Contributions you made to a SEP-IRA, SIMPLE IRA, or other qualified retirement plan as a self-employed individual.
- 17 Self-Employed Health Insurance Deduction The cost of health insurance premiums you paid as a self-employed individual for yourself, your spouse, your dependents, and your children under age 27.
- 18 Penalty on Early Withdrawal of Savings The penalty your bank or financial institution charged you for withdrawing funds from a time deposit (such as a CD) before its maturity date.
- 19a Alimony Paid Alimony or separate maintenance payments you paid under a divorce or separation agreement executed before January 1, 2019.
- 20 IRA Deduction Your deductible contribution to a traditional IRA. For 2025, the maximum contribution is $7,000 ($8,000 if you are 50 or older by the end of the year).
- 21 Student Loan Interest Deduction Up to $2,500 of interest you paid on qualified student loans during the year.
- 25 Total Other Adjustments The sum of lines 24a through 24z. These are miscellaneous adjustments to income that do not have their own dedicated lines on Schedule 1.
- 26 Total Adjustments to Income The sum of lines 11 through 23 and line 25. This is your total adjustments to income -- every above-the-line deduction available on Schedule 1.