Schedule 1-A Form: The Four New OBBBA Deductions, Explained (2026)

Schedule 1-A is the Form 1040 attachment for four OBBBA deductions — tips, overtime, car loan interest, and the $6,000 senior deduction. Who must file it, where each line goes, and which tax software

Tax rules: IRS (2025 Schedule 1-A; Form 1040 instructions; OBBBA fact sheet FS-2025-03) · Vehicle data: NHTSA vPIC · Data updated: July 17, 2026

Schedule 1-A is the one-page Form 1040 attachment that claims four deductions the One Big Beautiful Bill Act created for tax years 2025–2028: tips, overtime, car loan interest, and a $6,000 senior deduction (IRS: 2025 Schedule 1-A). It works with the standard deduction — no itemizing. Car loan interest sits in Part IV.

This is a tax deduction, not a tax credit. It trims your taxable income, not your bill dollar for dollar. And Schedule 1-A is not Schedule 1: two forms, nearly the same name. Here for car loan interest? The line-by-line walkthrough is the deep guide. This page routes all four.

Schedule 1 vs Schedule 1-A: not the same form

Yes, there is a difference. Schedule 1, "Additional Income and Adjustments to Income," reports extra income and above-the-line adjustments like student loan interest. The Additional Deductions form, Schedule 1-A, is new for tax year 2025. It holds the four new OBBBA deductions and nothing else (IRS: what to know about the new form). The draft vs final form question is settled — the 2025 Schedule 1-A is final. Same 1040, different jobs.

The four deductions on Schedule 1-A

Each deduction gets its own Part, its own cap, its own income limit (IRS: OBBBA fact sheet FS-2025-03). Only the car loan interest line is this site's subject. The rest sit here so you can tell them apart.

DeductionPartMax per yearPhases out above (MAGI)
Tips deductionPart II$25,000$150,000 single / $300,000 joint
Overtime deductionPart III$12,500 ($25,000 joint)$150,000 single / $300,000 joint
Car loan interestPart IV$10,000$100,000 single / $200,000 joint
Senior deduction, age 65+Part V$6,000 per person$75,000 single / $150,000 joint

All four run 2025–2028 and stack on the standard deduction (IRS: FS-2025-03). The tips deduction and overtime deduction carry their own IRS rules, out of scope here. For car loan interest, the full deduction guide covers eligibility — new vehicle, US final assembly, loan originated after December 31, 2024 — and the 1098-VLI guide explains the lender statement.

One attachment, four deductions: car loan interest sits in Part IV, and every part totals on line 38 to Form 1040 line 13b.

Router diagram of Schedule 1-A showing its four OBBBA deductions — Part II tips (up to $25,000), Part III overtime, Part IV car loan interest (up to $10,000), and Part V senior deduction ($6,000) — all totaling on line 38 and flowing to Form 1040 line 13b.

Who must file Schedule 1-A — and how it reaches your 1040

You file Schedule 1-A only if you claim at least one of its four deductions (IRS: what to know about the new form). It works with the standard deduction or with itemizing. Its totals attach to Form 1040, 1040-SR, or 1040-NR. Part I settles your MAGI first. Every phase-out keys off it, so run yours through the calculator if income sits near a limit. The figures reach line 38, then flow to Form 1040 line 13b. Software builds and e-files it; paper filers mail it behind the 1040.

Does your tax software support Schedule 1-A?

Yes, at all four major consumer programs. The "does it handle the new Schedule 1-A?" question — asked about FreeTaxUSA on r/tax in April 2026 — has the same answer everywhere. Support can change; current as of July 2026:

SoftwareSchedule 1-A supported?Note
TurboTaxYesGenerates and e-files it; inside Free Edition's published scope.
FreeTaxUSAYesAdvertises IRS e-file with Schedule 1-A.
H&R BlockYesHandled in the deductions interview; publishes its own OBBB car-loan guide.
TaxSlayerYesConsumer and Pro knowledge-base articles since late January 2026.

None label the screen "1098-VLI." The car loan entry lives under Deductions & Credits, not a form-named page. The line-by-line walkthrough has the click path for each program.

Get the official Schedule 1-A form

The IRS posts it free. Get the fillable PDF, 2025 Schedule 1-A (Form 1040) , plus the plain-language what to know overview . The IRS instructions PDF for Form 1040 shows the line-38 flow to line 13b. Skip any "free OBBBA calculator" that wants an SSN or a payment — the IRS flagged fake tools in FS-2026-09. To size a car loan deduction with nothing stored, use the calculator ; to check US assembly, run the VIN check .

All filing guides in this topic

Частые вопросы

What's the difference between Schedule 1 and Schedule 1-A?
Different forms, similar names. Schedule 1 reports additional income and above-the-line adjustments. Schedule 1-A, new for 2025, claims the four OBBBA deductions — tips, overtime, car loan interest, and the $6,000 senior deduction (IRS: what to know about the new form). Both attach to Form 1040.
Who must file Schedule 1-A?
Only filers claiming at least one of its four deductions; skip it if none apply. It works with the standard deduction — no itemizing required — and its totals attach to Form 1040, 1040-SR, or 1040-NR (IRS: 2025 Schedule 1-A).
Which line is car loan interest on Schedule 1-A?
Part IV. You enter the VIN and the interest you paid, capped at $10,000 a year, then subtract the phase-out above $100,000 single or $200,000 joint (IRS: OBBBA fact sheet FS-2025-03). It feeds line 38, then Form 1040 line 13b.
Does tax software include Schedule 1-A?
Yes. TurboTax, FreeTaxUSA, H&R Block, and TaxSlayer all generate and e-file it (current as of July 2026). None label the screen 1098-VLI; the car loan entry sits under Deductions & Credits.

Not tax advice. Sources cited only — expert review pending; consult a licensed tax professional (full disclaimer). Tax figures: IRS 2025 Schedule 1-A; Form 1040 instructions; OBBBA fact sheet FS-2025-03. Vehicle data: NHTSA vPIC. Data updated: July 17, 2026.

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