Schedule 1: Extra Income and Adjustments

Schedule 1 is a form that attaches to Form 1040. It has two parts. Part I lists additional income that does not fit on the main form. Part II lists adjustments to income, which lower your income before you take the standard deduction or itemize. Totals from both parts flow to Form 1040. IRS: 2025 Schedule 1 (Form 1040)

Part I: additional income

Part I covers income that is not on the main part of Form 1040. Some of the lines most people use are:

Line 1: taxable refunds, credits, or offsets of state and local income tax
Line 3: business income or loss, from Schedule C
Line 5: rental real estate, royalties, partnerships, S corporations, and trusts, from Schedule E
Line 6: farm income or loss, from Schedule F
Line 7: unemployment compensation
Line 8: other income, with sub-lines 8a to 8z

Line 8 has many sub-lines. Each one covers a type of other income. Examples include gambling winnings on line 8b, jury duty pay on line 8h, and prizes and awards on line 8i. Enter the amount on the matching sub-line. IRS: 2025 Schedule 1 (Form 1040)

A business owner reports profit or loss on Schedule C, and that result moves to Part I, line 3.

Part II: adjustments to income

Part II lists adjustments that reduce your income. They come before the standard deduction, so they can lower your income even if you do not itemize. Common lines include:

Line 11: educator expenses
Line 13: health savings account deduction
Line 14: moving expenses for members of the Armed Forces
Line 15: deductible part of self-employment tax
Line 17: self-employed health insurance deduction
Line 20: IRA deduction
Line 21: student loan interest deduction

The 2025 deductions for tips, overtime, car loan interest, and seniors are not on Schedule 1. They go on Schedule 1-A, and the total from that schedule goes to Form 1040. IRS: Instructions for Form 1040 (2025)

Illustration only, with made-up numbers. Lee wins $900 in a store contest. The store files a Form 1099-MISC that shows the prize. Lee enters $900 on Schedule 1, Part I, line 8i, and that amount becomes part of total income.

Each adjustment has its own limits and rules. Some depend on your income. Read the form instructions for each line before you claim it.

What Schedule 1 does not cover

Credits are not on Schedule 1. They go on Schedule 3 (Form 1040), Additional Credits and Payments. Additional taxes, such as some taxes on retirement accounts, go on Schedule 2 (Form 1040), Additional Taxes. Schedule 1 is only for additional income and adjustments. IRS: Instructions for Form 1040 (2025)

Common mistakes

Some filers enter the same income twice, once on Schedule 1 and once on another schedule. Others put a total on the wrong line of Form 1040. Check each Schedule 1 line against the form that reports the income. Also make sure you qualify for each adjustment before you claim it. Keep a copy of your Schedule 1 with your return. If you are not sure where an item goes, check the instructions for the form that reports it.

Steps to take

List every income form you received for the year.
Match each item to a Part I line on Schedule 1, or to another schedule such as Schedule C or Schedule E.
List the adjustments you qualify for, and match each one to a Part II line.
Add each part and carry the totals to Form 1040.
Keep the schedule and its supporting records with your return. A copy of each income form you used should be in the same file.

General information, not advice about your return.

Sources: Sources: IRS, 2025 Schedule 1 (Form 1040), Additional Income and Adjustments to Income (https://www.irs.gov/pub/irs-pdf/f1040s1.pdf); IRS, Instructions for Form 1040 (2025) (https://www.irs.gov/instructions/i1040gi); IRS, About Form 1099-MISC (https://www.irs.gov/forms-pubs/about-form-1099-misc) This is general information, not advice about your specific return.

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