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Schedule 1-A Calculator: New Tax Deductions

Estimate all four new federal deductions on Schedule 1-A in one place — no tax on tips, no tax on overtime, car loan interest and the $6,000 senior deduction. Each is capped and phased out separately, then combined to show your total federal tax savings for 2025 or 2026.

Updated By the Calcvera editorial team How we build & check our calculators

Your income & deductions

Your total income after adjustments — Form 1040, line 11. For most people this equals MAGI.

Leave 0 to use the standard deduction.

The “half” in time-and-a-half.

Your results

Estimated total federal tax savings

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Total Schedule 1-A deduction

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Taxable income after

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Your marginal rate

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Deduction by deduction

How to use this calculator

  1. Enter your tax year, filing status and adjusted gross income. Choose how many filers are 65 or older — that drives the senior deduction.
  2. Enter each amount that applies to you: qualified tips, the qualified overtime premium and interest on a qualifying new-car loan. Leave any that don’t apply at 0.
  3. Confirm eligibility for tips and the car loan.
  4. Review the breakdown. The table shows each deduction after its cap and phase-out, and how much of your total saving it produces.

Need help with one piece? Our single-purpose calculators go deeper: tips, overtime, car loan interest and senior deduction.

The four new Schedule 1-A deductions at a glance

DeductionMaximumPhase-out starts (single / joint)Phase-out rate
Qualified tips$25,000 per return$150,000 / $300,000$100 per $1,000
Qualified overtime$12,500 / $25,000$150,000 / $300,000$100 per $1,000
Car loan interest$10,000 per return$100,000 / $200,000$200 per $1,000 (or part)
Senior (age 65+)$6,000 per person$75,000 / $150,0006% of excess MAGI

All four apply to tax years 2025 through 2028 and are available to itemizers and non-itemizers alike.

Worked example

Sam and Jordan file jointly with an AGI of $140,000 in 2026. Sam is a restaurant server with $15,000 of tips; Jordan earned a $5,000 overtime premium; and they paid $2,800 of interest on a new U.S.-assembled SUV. Neither is 65.

  • All three amounts are under their caps and their income is below every phase-out threshold, so the total Schedule 1-A deduction is $22,800.
  • Taxable income falls from $107,800 to $85,000. Part of that comes out of the 22% bracket and part out of the 12% bracket.
  • Estimated federal tax savings: about $3,436.

AGI, MAGI and why these deductions don’t lower them

These deductions are taken after adjusted gross income is calculated — they reduce taxable income, not AGI. That matters because many other benefits depend on AGI or MAGI: ACA premium tax credits, Medicare IRMAA surcharges, the taxation of Social Security benefits and many state programs. Claiming the new deductions won’t improve those, so check them separately with our ACA subsidy and IRMAA calculators.

How long the deductions last

Under current law, all four deductions expire after tax year 2028. Unless Congress extends them, 2028 returns (filed in 2029) are the last on which they can be claimed. Figures such as the tax brackets and standard deduction are adjusted for inflation each year; the caps and phase-out thresholds for these deductions are fixed dollar amounts in the law.

How the calculator works

Each deduction = min(amount, cap) − phase-out reduction (0 if ineligible) Total Schedule 1-A deduction = tips + overtime + car loan interest + senior Savings = federal tax on taxable income before − federal tax after

The per-deduction savings in the table are calculated in order (tips, overtime, car loan, senior), so they add up to the total. We apply the 2025 or 2026 brackets and standard deduction (including the extra amount for filers 65+). The estimate excludes credits, payroll taxes and state taxes — it isn’t tax advice.

Frequently asked questions

What is Schedule 1-A?
Schedule 1-A (Form 1040), “Additional Deductions”, is the IRS form for the four deductions created by the One Big Beautiful Bill Act: qualified tips, qualified overtime compensation, qualified passenger vehicle loan interest, and the enhanced deduction for seniors. The total flows to your Form 1040 as a deduction from taxable income.
Can I claim more than one of the new deductions?
Yes. They’re separate deductions with separate caps and phase-outs, so a tipped worker who also earns overtime and bought a qualifying new car could claim three of them — and a fourth if they’re 65 or older.
Do I have to itemize?
No. All four are available whether you take the standard deduction or itemize.
Why is my tax saving smaller than the deduction?
A deduction reduces taxable income, not tax. Your saving is roughly the deduction multiplied by your marginal tax rate — 10%, 12%, 22% or 24% for most households. If your taxable income is already low, part of a deduction may have no effect at all.
Do married couples have to file jointly?
For the tips, overtime and senior deductions, yes — married people filing separately can’t claim them. The calculator flags this if you choose “married filing separately”.

Sources

Key terms

About this calculator. Written and maintained by the Calcvera editorial team and last reviewed on September 25, 2026. Rules and figures are checked against the official sources listed above. Results are estimates for education — not financial, tax or legal advice. Found an error? Tell us and we'll fix it. Read our editorial policy.