Adjustment to Income, Above the Line Deductions

These adjustments to income are listed on Schedule 1 Part I and II commonly known as " above-the-line deductions," reduce your total income to arrive at Adjusted Gross Income (AGI). These deductions are available regardless of whether you itemize deductions or take the standard deduction. The total from Line 26 of Schedule 1 is transferred to Line 10 of Form 1040, 1040-SR, or 1040-NR.

Part II of Schedule 1 - Adjustments to Income

No.
Name
Description
Line 11
Educator expenses
Eligible educators (K-12 teachers, instructors, counselors, principals, or aides who worked at least 900 hours during a school year) can deduct up to $300 of qualified expenses ($600 if married filing jointly and both spouses are eligible educators). Qualified expenses include professional development courses, books, supplies, computer equipment, software, and COVID-19 protective equipment.
Line 12
Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106
Deductible business expenses for: (1) National Guard and reserve members who traveled more than 100 miles from home; (2) qualified performing artists; (3) fee-basis state or local government officials. Complete and attach Form 2106.
Line 13
Health savings account deduction. Attach Form 8889
Deduction for contributions made to your Health Savings Account (HSA) for 2024, excluding employer contributions, rollovers, and qualified HSA funding distributions from an IRA. Complete and attach Form 8889.
Line 14
Moving expenses for members of the Armed Forces. Attach Form 3903. If claiming only storage fees, check here
Deductible moving expenses for Armed Forces members on active duty moving due to a military order and permanent change of station. Complete and attach Form 3903.
Line 15
Deductible part of self-employment tax. Attach Schedule SE
Deduction for one-half of your self-employment tax. If you were self-employed and owe self-employment tax, complete Schedule SE. The deductible amount is on Line 13 of Schedule SE.
Line 16
Self-employed SEP, SIMPLE, and qualified plans
Deduction for contributions to self-employed retirement plans including SEP, SIMPLE, and qualified plans. Self-employed individuals and partners may take this deduction. See Publication 560.
Line 17
Self-employed health insurance deduction
Deduction for health insurance premiums (medical, dental, vision, and qualified long-term care) paid for yourself, spouse, and dependents if you were self-employed with net profit, a partner with net earnings from self-employment, or a more-than-2% S corporation shareholder. The insurance plan must be established under your business.
Line 18
Penalty on early withdrawal of savings
Report any penalty charged for early withdrawal of savings as shown on Form 1099-INT or Form 1099-OID.
Line 19a
Alimony paid
Deduction for alimony or separate maintenance paid under divorce or separation agreements entered into on or before December 31, 2018. Alimony paid under agreements made after December 31, 2018 is not deductible. See Publication 504.
Line 19b
Recipient's SSN
Enter the social security number of the alimony recipient. Failure to provide this information may result in penalties.
Line 19c
Date of original divorce or separation agreement
Enter the month and year of your original divorce or separation agreement that relates to the alimony deduction.
Line 20
IRA deduction. If you are married filing separately and lived apart from your spouse for the entire year, check here
Deduction for contributions to a traditional IRA. You or your spouse must have earned income. The deduction may be reduced or eliminated if you or your spouse is covered by a retirement plan at work and your modified AGI exceeds certain thresholds. Contributions to Roth IRAs are not deductible. Use the IRA Deduction Worksheet. Nondeductible contributions must be reported on Form 8606.
Line 21
Student loan interest deduction
Deduction of up to $2,500 for interest paid on qualified student loans. Available if your modified AGI is less than $95,000 (single, head of household, or qualifying surviving spouse) or $195,000 (married filing jointly), you cannot be claimed as a dependent, and your filing status is not married filing separately. Use the Student Loan Interest Deduction Worksheet.
Line 22
Reserved for future use
This line is currently not in use and reserved for potential future tax provisions.
Line 23
Archer MSA deduction
Deduction for contributions to an Archer Medical Savings Account. See Form 8853.
Line 24
Other adjustments (various)
Various less common adjustments to income as detailed in Lines 24a through 24z below.
Line 24a
Jury duty pay
Enter jury duty pay turned over to your employer because your employer continued to pay your salary while you served on jury duty.
Line 24b
Deductible expenses related to income reported on line 8l from the rental of personal property engaged in for profit
Expenses related to rental of personal property income reported on Line 8l, when engaged in for profit but not as a regular business.
Line 24c
Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m
Enter the nontaxable amount of Olympic and Paralympic medals and USOC prize money that was reported as income on Line 8m.
Line 24d
Reforestation amortization and expenses
Deductible reforestation expenses and amortization. See Instructions for Form 4562.
Line 24e
Repayment of supplemental unemployment benefits under the Trade Act of 1974
Repayments of supplemental unemployment benefits received under the Trade Act of 1974. See Publication 525.
Line 24f
Contributions to section 501(c)(18)(D) pension plans
Contributions to specific pension plans described under section 501(c)(18)(D). See Publication 525.
Line 24g
Contributions by certain chaplains to section 403(b) plans
Contributions by certain chaplains to section 403(b) tax-sheltered annuity plans.
Line 24h
Attorney fees and court costs for actions involving certain unlawful discrimination claims
Attorney fees and court costs for unlawful discrimination claims, limited to the amount of gross income from such actions. See Publication 525.
Line 24i
Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations
Attorney fees and court costs paid in connection with IRS whistleblower awards, up to the amount of the award included in gross income.
Line 24j
Housing deduction from Form 2555
Housing deduction for qualifying individuals living abroad. Enter the amount from Form 2555.
Line 24k
Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041)
Excess deductions from estates or trusts reported in Box 11, Code A of Schedule K-1 (Form 1041). See Instructions for Schedule K-1 (Form 1041).
Line 24z
Other adjustments. List type and amount
Reserved for future use. Leave blank unless instructed otherwise.
Line 25
Total other adjustments. Add lines 24a through 24z
Total of all other adjustments from Lines 24a through 24z.
Line 26
Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10
Total adjustments to income from Part II. Transfer this amount to Form 1040, 1040-SR, or 1040-NR, Line 10. This amount is subtracted from your total income to determine your Adjusted Gross Income (AGI).

Additional Income

Important Filing Instructions

Form 1099-K Reporting: If you received Form 1099-K showing payments included in error (gifts, reimbursements) or for personal items sold at a loss, enter the incorrect amount in the designated entry space at the top of Schedule 1. Personal items sold at a gain must be reported as capital gains on Form 8949 and Schedule D.

After Completing Schedule 1: The amount from Part I, Line 10 (Additional Income) is transferred to Form 1040, Line 8. The total from Part II, Line 26 (Adjustments to Income) is transferred to Form 1040, Line 10, where it reduces your total income to calculate your Adjusted Gross Income (AGI).

Required Attachments: Always attach any schedules or forms referenced in these instructions, including Schedule C, Schedule E, Schedule F, Form 2106, Form 8889, Form 3903, Schedule SE, and any other supporting documentation required for specific line items.

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