The IRS on Friday, Sept. 12, released a draft of Schedule 1-A (Form 1040), Additional Deductions, which includes sections for calculating four deductions allowed under H.R. 1, commonly known as the One Big Beautiful Bill Act, on a single form.
The form sections lay out the calculations of the deductions for tips, overtime and car loan interest as well as the calculation of the enhanced senior deduction.
Taxpayers calculate the amount of the deductions that apply to them, add the amounts together, and include the total on line 13b of their Form 1040, U.S. Individual Income Tax Return; Form 1040-SR, U.S. Income Tax Return for Seniors; or line 13c of Form 1040-NR, U.S. Nonresident Alien Income Tax Return.
The form also includes a section for calculating the taxpayer’s modified adjusted gross income amount, which is used in calculating the four deductions. Read more.