Additional Deductions, Tip, Overtime, Car Interest on Schedule 1-A

There are five parts to the additional deductions as listed on Schedule 1-A (set to expire by Dec. 31, 2028). Introduced in 2025 through the OBBB, these deductions apply currently for four tax years: 2025, 2026, 2027, and 2028, unless extended by December 1, 2028.

Review the actual Schedule 1-A, Additional Deductions Form 1040.

Frequently Asked Questions

How is the MAGI calculated?

Visist the Modified Adjusted Gross Income page for a detailed overview.

How is the Tip Income Deduction calculated?

Visit the Tip Income page on how the Tip Income deduction is calculated. The eFile.com tax calculator and estimator inlcudes the tip deduction when estimating your next IRA income tax return.

How is the Overtime Pay Tax Exemption Deduction calculated?

Visit the Overtime Pay Deduction Tax Exmption page on how the overtime pay deduction is calculated. The eFile.com tax calculator and estimator inlcudes the overtime pay tax exemption and deduction when estimating your next tax return.

How is the Auto Car Loan Interest Deduction calculated?

Visit the Auto Car Loan Interest Deduction page on the requirements to qualify for the auto car loan interest deduction. The eFile.com tax calculator and estimator inlcudes the car loan interest deduction when estimating your next tax return.

How is the Senior Tax Deduction calculated; do you qualify?

Visit the Standard Deduction page on for details about the senior deduction and how it phases out. The eFile.com tax calculator and estimator inlcudes the senior deduction as well as the Social Security Income Tax Calculator. Find out how much in IRS taxes you might owe on your social security income in case you have addition income e.g. IRA distributions, pensions etc.

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