1040 Schedule 1

Schedule 1—Additional Income and Adjustments to Income is a schedule form of 1040. Taxpayers who will report additional income and adjust income in [year] must fill out Schedule 1 and attach it to their federal income tax returns.

Filing Form 1040 to file your federal income tax return may already be sufficient; however, some people require an additional form or schedule to account for specific other sources of income or adjustments made to their earnings.

This form includes various types of income not reported on Form 1040, such as alimony, capital gains, and rental real estate. Furthermore, it documents any deductible expenses you may have had during the year, like health insurance premiums or student loan interest deductions.

Who Must File Form 1040 Schedule 1?

If you earned income from rental properties, won prizes and awards, or paid student loan interest during the year, you may need to file Form 1040 Schedule 1. In 2024, the IRS redesigned this process by moving these reporting details onto multiple forms known as schedules.

You can either complete Schedule 1 on your own or enlist the aid of a tax preparer. Many tax preparation software programs will automatically do this part of the return for you.

Schedule 1 begins by collecting basic information about you, your filing status, and how many dependents you have. It then goes on to calculate income and deductions, calculate taxable income, then consult federal tax tables to determine how much taxes are due.

Printable Form 1040 Schedule 1

Form 1040 Schedule 1 is an essential step in preparing your tax return. It outlines your income sources, such as state tax refunds, businesses, rentals, partnerships, and unemployment compensation. It also includes any adjustments to income, such as retirement plan contributions or deductible self-employment tax.

According to your income, you may need to file additional forms. For instance, adding a Schedule B form is necessary if your taxable income exceeds a certain threshold or requires you to pay other taxes on investments that qualify for special tax treatment.

This Schedule 1 features numerous areas that provide Screen Tips to assist in placing information correctly on the form. It is highly recommended that you review these Tips before entering any data into a line.

What Are Forms of Additional Income?

Additional income sources can include tax refunds, business income, rental real estate profits (or losses), and farm profits (or losses). But most impressive of all is the tax rebate you receive from the government for taking advantage of the earned income credit.

Supplemental income can be more complex to calculate and should always be handled by a trusted tax professional. Common examples include education expenses, certain reservist business expenses, health saving account deductions, deductible part of self-employment taxes, and student loan interest. The IRS refers to this tax break as the nifty tidbits tax; if you’re lucky enough to be part of the military community, you may qualify for its e-filed version, which allows you to see your refund amount within five minutes!

What Are Adjustments to Income?

Adjustments to income are tax deductions that reduce your total gross income and lower your adjusted gross income, thus decreasing taxable income. This is one crucial factor when deciding whether you should itemize or claim the standard deduction on your federal income tax return.

The IRS allows a range of items to be claimed as adjustments, such as retirement plan contributions, health savings account (HSA) deductions, and student loan interest. Taking advantage of these deductions could reduce your taxable income and boost the chances of qualifying for tax breaks not available through the standard deduction.

If you need to calculate these adjustments, line 22 of Schedule 1 provides space. Lines 11 through 24 and 25 provide a place to add the values listed for items on earlier lines. That sum, which also appears on line 10a of Form 1040 or Senior Tax Version Forms for those 60 years or older, represents your total adjustments to income for 2024.

1040 schedule 1 instruction

If you have additional income, taxes, or credits not listed on your 1040 form, then filing Schedule 1 is necessary. These forms should be included in the package even if they still need to be filled out completely.

The schedule has two parts: Part 1 includes any additional income you receive and any adjustments; this part of the schedule may qualify for deductions such as student loan interest payments.

This section includes any nonrefundable credits you can claim, such as child tax or education credits. There’s also a section for other refundable credits like earned income credits. These refundable credits aren’t tax-exempt but offset your taxable income and reduce your tax bill.

1040 Schedule 1
1040 Schedule 1 1

Before you file Schedule 1, know that you can make adjustments to your income whether you itemize or take the standard deduction. The adjustments made to gross income will reduce your taxable income—just like the deductions.

However, what separates the deductions from adjustments how you claim them. While you will need to fill out Schedule A to itemize deductions, Schedule 1 is solely for reporting additional income and making adjustments to income.

Upon subtracting the adjustments from your gross income, you will get to your adjusted gross income. Your adjusted gross income will be used in multiple tax provisions, make sure to calculate it properly so that you don’t miss out on certain tax deductions such as the IRA deduction.

Fill Out 2024 Schedule 1 Online

For the 2024 tax season, Schedule 1 looks the same as in 2024. Fill out a free copy of Schedule 1 for your 2023 taxes and print out a paper copy right away. If you don’t have a printer available, you can download it as a PDF file and print out later.

Since you’re going to attach Schedule 1 to 1040—U.S. Individual Income Tax Return, file that as well while you’re at it.

Take note that this method of filing tax forms and schedules is not a replacement for e-filing. Once you file a 1040 and other tax forms, you must get them in the paper so that you can mail them to the Internal Revenue Service. Fill out Schedule 1 below and print out or download it as a PDF using the buttons on the top right.

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