What Schedule 1 is, in plain words
The 1040 has its own lines for pay, interest and Social Security. Other money goes on Schedule 1 first. That means a business, a rental, unemployment or a prize.
Part I adds up that extra income. Its total, line 10, goes to line 8 of the 1040.
Part II lists money that comes off your income before tax is figured. Student loan interest is one example. Its total, line 26, goes to line 10 of the 1040.
Schedule 1
What goes on every line
Tap any line to see what goes on it, with an example. A red dot means the number comes from a document sent to you. Most people use only some of these lines.
Schedule 1
2025
Part I: Additional income
Part II: Adjustments to income
From a document sent to you Rare. We don’t fill it yet
Read all 19 lines as a list
- Line 1 Taxable state refund
- Last year's state tax refund, but only if you itemized on last year's federal return. Most people skip this line.We don't fill this line yet.
- Line 2a Alimony received
- Only for divorces finalized before 2019.We don't fill this line yet.
- Line 3 Business income or loss
- The profit or loss from every Schedule C you file.Comes fromSchedule C, line 31
- Line 4 Other gains or losses
- Selling business property (Form 4797). Rare.We don't fill this line yet.
- Line 5 Rentals, royalties, partnerships, S corps
- The total from Schedule E: rental property, and your share of a partnership or S corp from a K-1.Comes fromSchedule E
- Line 6 Farm income
- From Schedule F.We don't fill this line yet.
- Line 7 Unemployment compensation
- Unemployment benefits from your state, all of it taxable.Comes from 1099-G, box 1
- Line 8z Other income
- Prizes, awards, jury duty pay, and other income without its own line. Write what it was next to the amount.Comes from 1099-MISC
- Line 9 Total other income
- Lines 8a through 8z added.
- Line 10 Total additional income
- Lines 1 through 7 plus line 9.Goes to Form 1040, line 8
- Line 11 Educator expenses
- Up to $300 a teacher spent on classroom supplies.
- Line 13 Health savings account deduction
- HSA money you put in yourself, outside of payroll.Comes fromForm 8889, line 13
- Line 15 Deductible part of self-employment tax
- Half of your self-employment tax. A boss pays half of a worker's Social Security tax. When you work for yourself, you pay both halves. So you get to take one half off.Example: Self-employment tax of $2,261: $2,261 ÷ 2 = $1,130.50 comes off.Comes fromSchedule SE, line 13
- Line 16 SEP, SIMPLE and solo 401(k)
- Retirement contributions for the self-employed.We don't fill this line yet.
- Line 17 Self-employed health insurance
- Health insurance premiums you paid as a self-employed person, up to your business profit.We don't fill this line yet.
- Line 18 Early withdrawal penalty
- A penalty a bank charged for cashing out a CD early (box 2 of a 1099-INT).We don't fill this line yet.
- Line 20 IRA deduction
- Money you put into a traditional IRA, if you qualify.We don't fill this line yet.
- Line 21 Student loan interest
- Up to $2,500 of interest from your 1098-E, smaller as income rises.Comes fromthe student loan interest worksheet
- Line 26 Total adjustments
- Every Part II line added.Goes to Form 1040, line 10
What you need before you start
Gather these first. Then filling out Schedule 1 is mostly copying numbers.
Documents sent to you
- 1099-GUnemployment benefits, or a state tax refund.Goes on line 7
- 1099-MISCRents, royalties, prizes and other odd payments.Goes on line 8z
Forms you fill out first, if they apply
Each one ends in a total that goes on Schedule 1.
- Schedule CA business you run yourself. What came in, minus what you spent.
- Schedule ERent you got, and your share of a partnership or S corp.
- Form 8889Money that went into or came out of a health savings account (HSA).
- Schedule SEThe tax for Social Security and Medicare when you work for yourself.
How to fill out Schedule 1
- 1
Do I need it?
Only if something on it applies to you. A W-2 job, some bank interest and the standard deduction usually means no Schedule 1.
- 2
Fill it after the forms behind it
Schedule C, E and SE come first. Schedule 1 just carries their totals.
- 3
Carry both totals
Line 10 to 1040 line 8, and line 26 to 1040 line 10. Missing one is a common mistake.
What’s next
Its two totals go to the 1040.
Questions people ask
Who needs to file Schedule 1?
You need it if you had money the 1040 has no line for. That means a business, a rental, unemployment or a prize. You also need it to take off things like student loan interest.
Is unemployment on Schedule 1?
Yes, line 7. The amount is box 1 of your 1099-G.
Is Schedule 1 the same as Schedule 1-A?
No. Schedule 1-A is new for 2025 and holds the deductions for tips, overtime, car loan interest and people 65 and older. It goes to 1040 line 13b, not through Schedule 1.
Where does Schedule C go?
Its profit goes to Schedule 1 line 3. Half of the self-employment tax on it comes back as an adjustment on line 15.
Hand it over
Bring the documents. We fill in Schedule 1.
Start a return with the forms you have. You get a filled-in 1040 that you check, sign and mail. Free to start. The print-ready forms cost $99.