2026 Filing Season Change
Schedule 1-A: New IRS Form for Tip and Overtime Exclusions (2025)
Schedule 1-A is a brand-new IRS form for 2025 tax returns. It is used to claim the federal income tax exclusions for tip income and overtime pay under the One Big Beautiful Bill.
Who Qualifies
Any taxpayer claiming the tip income exclusion, overtime pay exclusion, or both on their 2025 federal return.
Key Facts
Schedule 1-A is a net-new IRS form introduced for 2025 tax returns.
It combines both the tip exclusion and overtime exclusion on one form.
The form attaches to your Form 1040 and flows to Schedule 1, line 26.
Available for download from IRS.gov and supported by all major tax software for 2025 filing.
You only need to file Schedule 1-A if you are claiming one or both exclusions.
The form requires W-2 Box 14 data for overtime and tip income documentation.
Important Deadlines
Apr 15, 2026
SoonFederal filing deadline — Schedule 1-A must be filed with Form 1040
Oct 15, 2026
On TrackExtended deadline — Schedule 1-A accepted with extension returns
Jan 31, 2026
PassedW-2 issuance deadline — need Box 14 data for Schedule 1-A
FAQ
What is Schedule 1-A and who needs to file it?
Schedule 1-A is a new IRS form for 2025 tax returns that lets taxpayers claim the federal income tax exclusion on tips, overtime pay, or both. You need to file it only if you are claiming one or both of these new exclusions. It attaches to your Form 1040.
Where can I download Schedule 1-A?
Schedule 1-A is available on IRS.gov under Forms & Instructions for the 2025 tax year. All major tax preparation software (TurboTax, H&R Block, FreeTaxUSA, etc.) includes Schedule 1-A in their 2025 filing products.
How does Schedule 1-A connect to the rest of my tax return?
Schedule 1-A calculates your tip and/or overtime exclusion amounts. The total exclusion flows to Schedule 1 (Additional Income and Adjustments to Income), line 26, as an adjustment that reduces your gross income on Form 1040.
Can I claim both the tip and overtime exclusion on the same Schedule 1-A?
Yes. Schedule 1-A has separate sections for tip income exclusion and overtime pay exclusion. If you qualify for both, complete both sections on a single Schedule 1-A. The combined exclusion will flow as one adjustment to your Schedule 1.
What information do I need to complete Schedule 1-A?
You need your W-2 showing tip income (Box 7 or Box 14) and overtime pay (Box 14). You also need your total AGI to determine if income phaseouts apply to the tip exclusion. Keep records of tip reporting (Form 4070) if applicable.
Other 2026 Tax Changes
No Tax on Tips
Tips are now excluded from federal income tax for qualifying tipped workers filing 2025 returns. Claim the exclusion on the new Schedule 1-A.
No Tax on Overtime
Overtime pay is now excluded from federal income tax for W-2 employees filing 2025 returns. Claim the exclusion using the new Schedule 1-A.
Senior Standard Deduction
Seniors age 65 and older receive an additional $4,000 standard deduction on top of the normal amount for 2025 returns, providing significant tax relief for retirees.
Child Tax Credit $2,500
The Child Tax Credit increases to $2,500 per qualifying child for 2025 returns, up from $2,000 per child. More of the credit is refundable for lower-income families.
All Tax Changes
Complete overview of all tax changes from the One Big Beautiful Bill that affect 2025 federal tax returns filed in 2026, including no tax on tips, no tax on overtime, Schedule 1-A, increased Child Tax Credit, and enhanced senior deduction.