- Tax you still pay $0
- Tax you save $0
- Without deduction $0
| Tips | $0 |
| Overtime | $0 |
| Car loan interest | $0 |
| Senior (65+) | $0 |
| Total (Form 1040 line 13b) | $0 |
The four Schedule 1-A deductions at a glance
| Deduction | Maximum | Phase-out starts (MAGI) | Phase-out rate |
|---|---|---|---|
| No tax on tips | $25,000 per return | $150,000 / $300,000 joint | $100 per $1,000 |
| No tax on overtime | $12,500 / $25,000 joint | $150,000 / $300,000 joint | $100 per $1,000 |
| Car loan interest | $10,000 | $100,000 / $200,000 joint | $200 per $1,000 |
| Senior (65+) | $6,000 per person | $75,000 / $150,000 joint | 6% of the excess |
All four apply to tax years 2025 through 2028. They are taken after AGI (they don't lower your AGI), on top of the standard deduction or itemized deductions, and the total goes on Form 1040 line 13b.
2026 standard deduction and tax brackets used
| Filing status | Standard deduction 2026 | Standard deduction 2025 |
|---|---|---|
| Single / married filing separately | $16,100 | $15,750 |
| Married filing jointly | $32,200 | $31,500 |
| Head of household | $24,150 | $23,625 |
Frequently asked questions
What is Schedule 1-A?
Schedule 1-A (Form 1040), Additional Deductions, is the new IRS form for the four deductions created in 2025: qualified tips, qualified overtime, car loan interest and the enhanced senior deduction.
Can I claim more than one of these deductions?
Yes. If you qualify, you can claim all four on the same return, each with its own cap and phase-out.
Do I need to itemize to use Schedule 1-A?
No. All four deductions can be claimed with the standard deduction.
Do these deductions lower my AGI?
No. They are subtracted after AGI, so they lower taxable income but not AGI-based limits for other benefits.
When do these deductions end?
They apply to tax years 2025 through 2028 unless Congress extends them.
Related calculators
Sources
- IRS Fact Sheet FS-2025-03: tax deductions for working Americans and seniors
- IRS: tax year 2026 inflation adjustments (brackets and standard deduction)
- IRS: One, Big, Beautiful Bill provisions for individuals and workers
This calculator gives an estimate of federal income tax only, using IRS figures for tax years 2025 and 2026. It does not cover state tax, Social Security or Medicare tax, credits, or every rule on Schedule 1-A. It is not tax advice; check your return with tax software or a tax professional.