IRS Schedule 1 – Additional Income and Adjustments

Schedule 1 (Form 1040), Additional Income and Adjustments to Income, collects items that do not appear individually on the face of Form 1040 or Form 1040-SR. The final 2025 schedule has two distinct jobs: Part I adds specified income to the return, while Part II subtracts allowable adjustments in arriving at adjusted gross income.

It is not a substitute for the business, rental, farm, or other schedule that calculates an amount. For example, a sole proprietor calculates profit or loss on Schedule C and then carries the result to Schedule 1.

Download the current final Schedule 1 PDF from IRS.gov and consult the current IRS instructions. This page covers the 2025 revision for tax year 2025, verified 2026-08-10.

How the IRS classifies and files this form

Document type: attachment to Form 1040, 1040-SR, or 1040-NR.

Schedule 1 is filed with the applicable income tax return when it contains an entry. Its Part I total flows to the additional-income line and its Part II total flows to the adjustments-to-income line of the main return.

Part I: additional income

Part I includes taxable refunds or credits of state and local income taxes, alimony received under agreements to which the current rules apply, business income or loss, gains or losses from Form 4797, rental and pass-through amounts from Schedule E, farm income or loss from Schedule F, unemployment compensation, and other income identified by the schedule and instructions.

“Other income” is not permission to net unrelated receipts and expenses into one number. Each item should use the specified line or code, and activities requiring a supporting form must be calculated there first.

Part II: adjustments before itemized or standard deduction

Adjustments can reduce adjusted gross income without requiring the taxpayer to itemize on Schedule A. The 2025 schedule includes items such as educator expenses, certain reservist and performing-artist business expenses, health savings account deductions, deductible self-employment tax, self-employed retirement and health insurance deductions, penalties on early withdrawal of savings, alimony paid under qualifying pre-2019 instruments, IRA deductions, and student loan interest.

Each adjustment has its own eligibility limit. The presence of a label on Schedule 1 does not establish that the taxpayer qualifies.

How Schedule 1 affects the rest of the return

The Part I total increases total income. The Part II total reduces income in determining adjusted gross income. AGI then affects numerous deductions, credits, and limitations elsewhere on the return. This makes classification important: an amount entered on the wrong side of Schedule 1 can distort more than one tax calculation.

Schedule 1 versus Schedule 1-A

For 2025, Schedule 1-A is a separate schedule for the deductions for qualified tips, qualified overtime compensation, qualified passenger vehicle loan interest, and the enhanced deduction for seniors. Those items do not belong in the general Schedule 1 adjustments merely because both schedules affect income.

Review points before filing

• Reconcile business, rental, farm, and disposition totals with their supporting schedules.
• Do not enter tax-exempt income as taxable merely because an information statement shows it.
• Confirm that an adjustment is allowed for 2025 and is not already deducted elsewhere.
• Use separate descriptions or codes required for “other” lines.
• Carry both part totals to the correct lines of the main return.

Tracing amounts into Schedule 1

The schedule works best as a map rather than a calculation sheet. Business profit is calculated on Schedule C; rental and pass-through income on Schedule E; farm profit on Schedule F; and gains from business-property dispositions on Form 4797. Schedule 1 then combines their results with items entered directly. A mismatch between the supporting form and Schedule 1 can produce an IRS notice even when the underlying calculation was correct.

Taxpayers receiving Forms 1099 should not assume every box maps to “other income.” The payer’s label, the taxpayer’s activity, and the governing instructions determine whether the amount belongs in wages, interest, dividends, capital transactions, business income, rental income, or a Schedule 1 line.

Adjustments and AGI-sensitive benefits

Because Part II reduces AGI, an allowed adjustment can influence medical-expense deductions, education benefits, credits, IRA deductions, and other income-based provisions. That broader effect is why a taxpayer should not duplicate an expense—for example, taking self-employed health insurance as an adjustment and again as an itemized medical expense without the required reduction.

Keep the worksheet or form supporting every adjustment, including HSA documentation, IRA basis and contribution records, student-loan statements, self-employed plan computations, and proof of any alimony instrument governed by the pre-2019 rules.

Source-to-return reconciliation

This cross-check identifies the records and calculations that should agree before Schedule 1 is filed. It is especially useful when several statements or supporting forms feed one line.

Resolve any Schedule 1 difference at the source rather than forcing it into the final total. Retain this reconciliation and the documents behind it with the tax records even when the worksheet itself is not submitted to the IRS.

Questions taxpayers commonly ask

Do all Form 1040 filers need Schedule 1?

No. It is needed only when the taxpayer has an applicable additional-income or adjustment item.

Is Schedule 1 the same as itemizing deductions?

No. Itemized deductions are calculated on Schedule A. Schedule 1 Part II contains adjustments used in computing AGI.

Where does Schedule C income go?

The net Schedule C result is carried to the designated business-income line in Part I.

FederalFormGuide.com is an independent informational resource, not the IRS. This guide provides general information and does not replace the current IRS instructions or professional advice for a taxpayer’s facts.

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