Schedule 1-A FAQ, Privacy & Disclaimers (2026)

FAQ

What is Schedule 1-A?

Schedule 1-A is a new deduction schedule proposed for the 2025-2028 tax years. It lets eligible taxpayers claim four categories of deductions: tips, overtime, car loan interest, and a senior deduction. The total deduction from Schedule 1-A flows to Form 1040, line 13a for the 2026 tax year.

Who can claim the tips deduction?

You may claim the tips deduction if you work in a qualifying tipped occupation listed in the IRS proposed guidance and you have a valid Social Security number. If you are married, you generally must file a joint return to claim the deduction. The deduction is capped at $25,000 and phases out starting at a modified adjusted gross income (MAGI) of $150,000 for single filers and $300,000 for married filing jointly.

What part of overtime counts?

Only the overtime premium — the amount paid above your regular hourly rate that is required by the Fair Labor Standards Act (FLSA) — counts toward the deduction. The deduction is capped at $12,500 ($25,000 if married filing jointly).

I bought a used car in 2026 — does the interest count?

No. The car loan interest deduction is only available for a new vehicle whose original use begins with you, and the vehicle must have been finally assembled in the United States. The deduction is capped at $10,000 of qualified loan principal.

How does the senior deduction work?

The senior deduction is $6,000 per eligible person who was born before January 2, 1962 and has a valid Social Security number. The deduction phases out at a rate of 6% over a MAGI range of $75,000 for single filers and $150,000 for married filing jointly.

I'm married filing separately — why does the calculator show $0?

Married filing separately filers are generally barred from claiming the tips, overtime, and senior deductions under the proposed rules. The car loan interest deduction may be available to you in limited circumstances, but eligibility is narrow. Please review the form instructions carefully or consult a qualified tax professional.

Do these deductions reduce self-employment tax or state tax?

No. Schedule 1-A deductions reduce federal adjusted gross income for income tax purposes only. They do not reduce self-employment tax and Schedule SE is unaffected.

Is this the final 2026 form?

No. The IRS draft of Schedule 1-A was posted September 4, 2026, but the final form is expected to be published in early 2027. This site will re-verify the rules and update accordingly.

Does the calculator store my numbers?

No. The calculator runs entirely in your browser and does not store or transmit your numbers to any server.

Can I file my taxes here?

No. This site provides information and estimates only; it is not a tax filing platform. Some pages may contain affiliate links to tax filing software, each clearly labeled.

Privacy

The S1A Calculator does not create user accounts and does not collect personal information. Your inputs never leave your browser — all calculations happen locally on your device. We do not request or store your Social Security number or any other personal identifiers.

The hosting provider may automatically record basic server logs, such as your IP address, browser type, and pages viewed, in accordance with standard hosting practices.

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Disclaimer

The content on this site is provided for educational information only and is not tax, legal, or financial advice. Our estimates may differ from amounts determined by the IRS or other tax authorities.

All figures on this site are based on the IRS draft of Schedule 1-A posted September 4, 2026, and the Rev. Proc. 2025-32 tax brackets. Both the form and the tax brackets are subject to change while Congress and the IRS finalize the 2026 tax year rules.

Always consult a qualified tax professional about your specific situation before filing.