Schedule 1-A is a new tax form designed to consolidate four key OBBBA deductions that can be taken for the first time in 2025. Ultimately these four deductions: the tip deduction, the overtime deduction, the deduction for interest paid on a new car loan, and the senior deduction, appear as a single entry on line 13b of Form 1040. These deductions are phased out at higher income levels, the calculation of which takes place on Schedule 1-A. Accounting and finance professionals who wish to understand the mechanics of the four deductions and how they are expressed on Schedule 1-A and consolidated on Form 1040 would benefit from taking this program.
Learning Objectives
- Implement the most common OBBBA changes for tax year 2025 using the new Schedule 1-A
Major Topics
- Purpose and organization of Schedule 1-A, Form 1040
- Taxpayers who can use Schedule 1-A
- The relationship of Form 1040 and Schedule 1-A
- Calculating modified adjusted gross income (MAGI) on Part I, Schedule 1-A
- The tip deduction, calculated on Part II, Schedule 1-A
- The overtime deduction, calculated on Part III, Schedule 1-A
- The car loan interest deduction, calculated on Part IV, Schedule 1-A
- The senior deduction, calculated on Part V, Schedule s1-A
- Phase-outs at higher levels of income
