Schedule 1 is filed only when the taxpayer has reportable additional income, adjustments to income, or certain Form 1099-K reporting situations that are not entered directly on Form 1040.
Part I – Additional Income
Line-by-Line Reference
| Line | Description | Common Source Documents |
|---|---|---|
| 1 | Taxable refunds, credits, or offsets of state and local income taxes | Form 1099-G (State Tax Refund) |
| 2a | Alimony received (for qualifying pre-2019 agreements) | Divorce decree, separation agreement, taxpayer records |
| 3 | Business income or (loss) | Schedule C, Forms 1099-NEC, 1099-K, business records |
| 4 | Other gains or (losses) | Form 4797, Form 4684 |
| 5 | Rental real estate, royalties, partnerships, S corporations, trusts, etc. | Schedule E, Schedule K-1 (1065, 1120-S, 1041) |
| 6 | Farm income or (loss) | Schedule F, farm records, Forms 1099-PATR and 1099-G |
| 7 | Unemployment compensation | Form 1099-G |
| 8 | Other income | See Line 8 breakdown below |
| 9 | Total Other Income | Sum of Lines 8a through 8z |
| 10 | Additional Income | Total of Lines 1-7 and Line 9. Flows to Form 1040, Line 8. |
Line 8 – Other Income Breakdown
| Line | Description | Common Source Documents |
|---|---|---|
| 8a | Net operating loss (NOL) deduction from a prior year |
Prior year return, NOL worksheets |
| 8b | Gambling income | Form W-2G, gambling records |
| 8c | Cancellation of debt income | Form 1099-C |
| 8d | Foreign earned income exclusion from Form 2555 | Form 2555 |
| 8e | Income from Form 8853 | Form 8853 |
| 8f | Income from Form 8889 | Form 8889 |
| 8g | Alaska Permanent Fund dividends | Form 1099-MISC |
| 8h | Jury duty pay | Court payment records |
| 8i | Prizes and awards | Form 1099-MISC, taxpayer records |
| 8j | Activity not engaged in for profit income | Taxpayer records |
| 8k | Stock options | Employer records, Form W-2, brokerage records |
| 8l | Income from rental of personal property engaged in for profit but not as a business | Taxpayer records, rental activity records |
| 8m | Olympic and Paralympic medals and USOC prize money | Award documentation |
| 8n | Section 951(a) inclusion | Form 5471 and supporting international tax records |
| 8o | Section 951A(a) inclusion | Form 8992 and supporting calculations |
| 8p | Section 461(l) excess business loss adjustment | Form 461 and related calculations |
| 8q | Taxable distributions from an ABLE account | Form 1099-QA |
| 8r | Scholarship and fellowship grants not reported on Form W-2 | Scholarship statements, school records |
| 8s | Nontaxable Medicaid waiver payments included on Form 1040, line 1a or 1d | Taxpayer records, employer/provider records |
| 8t | Pension or annuity from a nonqualified deferred compensation plan or nongovernmental section 457 plan | Form 1099-R |
| 8u | Wages earned while incarcerated | Form W-2, correctional facility records |
| 8v | Digital assets received as ordinary income not reported elsewhere | Form 1099-DA (when issued), Forms 1099-MISC, 1099-NEC, exchange records, taxpayer records |
| 8z | Other income | Supporting documentation as described in Form 1040 instructions |
Part II – Adjustments to Income
Line-by-Line Reference
| Line | Description | Common Source Documents |
|---|---|---|
| 11 | Educator expenses | Receipts and educator expense records |
| 12 | Certain business expenses of reservists, performing artists, and fee-basis government officials | Form 2106 and supporting records |
| 13 | Health Savings Account (HSA) deduction | Form 8889, Form 5498-SA, HSA contribution records |
| 14 | Moving expenses for members of the Armed Forces | Form 3903, moving expense records, military orders |
| 15 | Deductible part of self-employment tax | Schedule SE |
| 16 | Self-employed SEP, SIMPLE, and qualified plans | Retirement plan contribution records |
| 17 | Self-employed health insurance deduction | Health insurance premium records, Schedule C/F/K-1 information |
| 18 | Penalty on early withdrawal of savings | Form 1099-INT, Form 1099-OID |
| 19a | Alimony paid (qualifying pre-2019 agreements) | Divorce decree, payment records, recipient SSN |
| 20 | IRA deduction | Form 5498, IRA contribution records |
| 21 | Student loan interest deduction | Form 1098-E |
| 22 | Reserved for future use | N/A |
| 23 | Archer MSA deduction | Form 8853 |
Line 24 – Other Adjustments
| Line | Description | Common Source Documents |
|---|---|---|
| 24a | Jury duty pay paid over to employer | Court payment records and employer reimbursement records |
| 24b | Deductible expenses related to income reported on Line 8l (rental of personal property engaged in for profit) | Rental expense records |
| 24c | Nontaxable Olympic and Paralympic medals and USOC prize money reported on Line 8m | Award documentation |
| 24d | Reforestation amortization and expenses | Form T, forestry records |
| 24e | Repayment of supplemental unemployment benefits under the Trade Act of 1974 | Repayment documentation |
| 24f | Contributions to section 501(c)(18)(D) pension plans | Contribution records |
| 24g | Contributions by certain chaplains to section 403(b) plans | Employer records and contribution statements |
| 24h | Attorney fees and court costs for certain unlawful discrimination claims | Settlement documents and attorney invoices |
| 24i | Attorney fees and court costs paid in connection with an IRS whistleblower award | IRS award documentation and attorney fee statements |
| 24j | Housing deduction from Form 2555 | Form 2555 |
| 24k | Excess deductions of section 67(e) expenses | Schedule K-1 (Form 1041) |
| 24z | Other adjustments | Supporting documentation identified in Form 1040 instructions |
| Line | Description |
|---|---|
| 25 | Total Other Adjustments. Sum of Lines 24a through 24z. |
| 26 | Total Adjustments to Income. Flows to Form 1040, Line 10. |
Form 1040 Flow-Through
| Schedule 1 Line | Form 1040 Destination |
|---|---|
| Line 10 | Form 1040, Line 8 (Additional Income) |
| Line 26 | Form 1040, Line 10 (Adjustments to Income) |
Source: IRS Schedule 1 (Form 1040), Additional Income and Adjustments to Income, and Form 1040 Instructions