Tax year 2026 · Schedule 1-A
This tool is free, private, and runs entirely in your browser — nothing you type is ever uploaded to a server. It is based on the IRS 2026 draft Schedule 1-A and is an estimate only, not tax advice.
U.S. federal taxes only.
Estimates only, for planning — not tax advice. Verify against the final 2026 form when the IRS publishes it.
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Cash tips in occupations on the IRS's proposed tipped-occupations list can be deducted up to $25,000 — from your W-2 (box 12 code TP) and from your own business, where the deduction can't exceed that business's net profit. You need a valid SSN, and married taxpayers must file jointly.
Only the premium half of your overtime pay — not your regular hourly wage — is potentially excludable, and only when paid at 1.5x or 2x. Use the code TT from your W-2 for the most accurate figure.
A special deduction for interest on a new vehicle loan, but only if the vehicle's original use began with you and final assembly was performed in the United States. Interest you've already deducted elsewhere must be subtracted.
An additional amount for taxpayers born before January 2, 1962 (and, on joint returns, for a spouse who also qualifies), subject to income-based phase-outs.
Phase-outs. Every one of these deductions is reduced or eliminated as your modified adjusted gross income rises, and each deduction category has its own income thresholds. That's why results vary even with identical inputs.
Because the actual deduction depends on your precise MAGI, filing status, and how income phase-outs interact across the four categories — all of which the final 2026 form may adjust. We show the best estimate based on the draft form, plus any uncertainty notes.
Where the tips and overtime premium amounts live on your 2026 W-2, and what to do if a code is missing.
The pay stubs, 1099s and loan statements that back up each of the four deductions.
Draft-form status, filing-separately rules, and what could still change in the final form.