Who has to file Schedule 1 with Form 1040?

Attach Schedule 1 when the 2025 Form 1040 instructions route an additional-income item to Part I or an adjustment to Part II. Examples include unemployment compensation, nonbusiness gambling income, Schedule C or E income, and the student-loan-interest, educator-expense, HSA, self-employment-tax, or self-employed-plan adjustments. A document such as Schedule K-1 does not by itself determine the line; each item follows its own reporting instructions.

What's the difference between Part I and Part II of Schedule 1?

Part I (lines 1–10) reports Additional Income that flows to Form 1040 line 8. Part II (lines 11–26) reports Adjustments to Income — the 'above-the-line' deductions that reduce your AGI on Form 1040 line 10. You can use Part II without using Part I, and vice versa.

How much student loan interest can I deduct on Schedule 1 for 2025?

Up to $2,500 of qualified student loan interest on line 21. The deduction phases out between $85,000–$100,000 MAGI (single) or $170,000–$200,000 MAGI (married filing jointly) for 2025. You report what you actually paid, capped at $2,500, from Form 1098-E.

What's the educator expense deduction on Schedule 1?

Eligible K–12 teachers, instructors, counselors, principals, and aides who work 900+ hours in a school year can deduct up to $300 of unreimbursed classroom expenses on line 11 for 2025 ($600 if both spouses are educators filing jointly). Qualifying purchases include books, supplies, professional development, and COVID-protective items.

Do I file Schedule 1 for unemployment income?

Yes. Unemployment compensation reported on Form 1099-G goes on line 7 of Schedule 1 Part I. The full amount is federally taxable. State treatment varies — some states fully exempt unemployment from state tax.

Where does HSA contribution deduction go?

The deductible amount from Form 8889 line 13 flows to Schedule 1 line 13. Employer contributions and employee contributions made through a cafeteria plan are generally reported in W-2 box 12 with code W and are accounted for on Form 8889; do not deduct the same contribution again on Schedule 1.

Is alimony still deductible on Schedule 1?

Generally only for a divorce or separation instrument executed before 2019. A later modification can adopt the post-2018 treatment expressly. When the pre-2019 rules apply, the payer uses line 19a and the recipient uses line 2a; instruments executed after 2018 generally produce neither a payer deduction nor recipient income.

Do I report gambling winnings on Schedule 1?

Nonbusiness gambling income is reported on Schedule 1 line 8b, including winnings for which no Form W-2G was issued. A taxpayer engaged in the trade or business of gambling generally uses Schedule C instead. Loss deductions and the special 2026 limitation require a separate analysis under §165(d).

Updated August 24, 2026Reviewed for 2025 & 2026 tax yearsIRS-sourced

This line-by-line walkthrough covers the 2025 Form 1040 Schedule 1, filed in 2026.

Tax Year 2025 · Filed in 2026

How to Fill Out Form 1040 Schedule 1

The line-by-line walkthrough of additional income and above-the-line adjustments — including student loan interest, educator expenses, HSA, and self-employment deductions.

Schedule 1 is where the real work happens for anyone who isn't a pure W-2 filer. It's also where the easiest deductions live — things like the student loan interest deduction and educator expenses, which you can claim even if you take the standard deduction. This guide walks every line so you don't leave money on the table.

$2,500

max student loan interest deduction on Schedule 1 line 21

About Our Editorial Process

Prefer a task-oriented view? See the line-by-line walkthrough of Schedule 1 for the same content organized as a filing checklist.

What is Form 1040 Schedule 1?

Schedule 1 is the IRS form that attaches to Form 1040 for two purposes: Part I reports additional income that doesn't fit on the main 1040 (unemployment, business income, alimony, gambling, etc.), and Part II reports 'above-the-line' adjustments that reduce your AGI before the standard or itemized deduction (student loan interest, educator expenses, HSA contributions, self-employment tax, retirement plan contributions).

•Part I total → Form 1040, line 8 (additional income)
•Part II total → Form 1040, line 10 (adjustments to AGI)
•Above-the-line deductions apply even with the standard deduction
•A source document does not decide the line; follow the item's form instructions

Estimate your 2025 federal tax

Part I — Additional Income (lines 1–10)

Anything that isn't wages, interest, dividends, IRA/pension distributions, or Social Security benefits gets reported here. Total on line 10 carries to Form 1040 line 8.

Line 1Taxable refunds, credits, or offsets of state/local income taxes — only if you itemized last year and got a tax benefit.
Line 2aAlimony received — only for divorces finalized before 2019.
Line 3Business income from Schedule C.
Line 4Other gains/(losses) from Form 4797.
Line 5Rental real estate, royalties, partnerships, S corporations, trusts — from Schedule E.
Line 6Farm income from Schedule F.
Line 7Unemployment compensation from Form 1099-G.
Line 8Other income with sub-lines for gambling, jury duty, prizes/awards, hobby income, Olympic/Paralympic medals, Alaska Permanent Fund, cancellation of debt, foreign earned income exclusion, and more.
Line 9Total other income (sum of line 8 sub-lines).
Line 10Total additional income → carries to Form 1040, line 8.

Part II — Adjustments to Income (lines 11–26)

These are the "above-the-line" deductions. They reduce your AGI directly and you can claim them even if you take the standard deduction. Total on line 26 carries to Form 1040 line 10.

Line 11Educator expenses — up to $300 ($600 MFJ if both spouses qualify).
Line 12Certain business expenses for reservists, performing artists, and fee-basis government officials (Form 2106).
Line 13Health Savings Account (HSA) deduction — the deductible amount from Form 8889 line 13; employer and cafeteria-plan contributions are coordinated on that form.
Line 14Moving expenses — Armed Forces only.
Line 15Deductible part of self-employment tax — the employer-equivalent portion from Schedule SE line 13.
Line 16Self-employed SEP, SIMPLE, and qualified plan contributions.
Line 17Self-employed health insurance deduction.
Line 18Penalty on early withdrawal of savings from Form 1099-INT box 2 or 1099-OID box 3.
Line 19aAlimony paid — only for pre-2019 divorces.
Line 20IRA deduction — traditional IRA contributions subject to MAGI limits.
Line 21Student loan interest deduction — up to $2,500 (phases out at higher MAGI).
Line 22Reserved for future use.
Line 23Archer MSA deduction.
Line 24Other adjustments — jury duty pay turned over to employer, foreign housing deduction, attorney fees for discrimination/whistleblower suits, and more.
Line 25Total other adjustments.
Line 26Total adjustments to income → carries to Form 1040, line 10.

The two most-missed deductions on Schedule 1

Line 21

Student loan interest deduction

Up to $2,500 of interest paid on qualified student loans, reported on Form 1098-E by your servicer. Available even if you take the standard deduction.

2025 phase-out (MAGI): $85,000–$100,000 single; $170,000–$200,000 MFJ. MFS filers can't claim it at all.

Line 11

Educator expense deduction

Up to $300 per qualifying K–12 educator for unreimbursed classroom expenses ($600 MFJ if both spouses qualify). Books, supplies, software, PD courses, and PPE all count.

Eligibility: teach K–12, work 900+ hours per school year at a school providing elementary or secondary education under state law.

Common Schedule 1 mistakes

Double-deducting HSA contributions. Contributions reported with W-2 code W are coordinated on Form 8889; do not claim the same amount again on Schedule 1.
Claiming alimony on a post-2018 divorce. Only pre-2019 agreements qualify.
Forgetting state tax refund. If you itemized last year and deducted state taxes, your state refund may be taxable on line 1 this year.
Netting nonbusiness gambling winnings and losses. Report nonbusiness winnings on line 8b; determine any allowable loss deduction separately under Schedule A and §165(d). A gambling trade or business generally follows Schedule C rules.
Estimating the line 15 adjustment. Transfer the employer-equivalent portion from Schedule SE line 13 rather than assuming it is exactly half of every self-employment-related tax.

Related calculators & guides

Federal Tax Calculator

Estimate your 2025 federal tax including Schedule 1 income and adjustments.

Self-Employment Tax Calculator

Compute the SE tax and deductible half that flows to Schedule 1 line 15.

Self-Employment Tax Guide

Full breakdown of SE tax mechanics and the line 15 deduction.

Standard Deduction Guide

Schedule 1 adjustments apply even when you take the standard deduction.

Frequently Asked Questions

Sources

Sources & References

Primary references used for this content

Form 1040

U.S. Individual Income Tax Return

The return itself, plus every numbered schedule

View on irs.gov

Form 1040 Instructions

Line-by-line instructions

Official line-by-line guidance, including Schedule 1

View on irs.gov

✓2 primary sources; links re-checked on a weekly rotation by the source watcher

Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.