Schedule 1 of Form 1040
Additional Income and Adjustments to Income (Form 1040)
Schedule 1 is where income that has no line on the 1040 itself is reported, and where the adjustments that reduce total income are claimed. Its two totals carry back to the 1040 as additional income and as adjustments.
- Who files it
- Any individual with income or an adjustment that page one of Form 1040 has no line for. It is attached to the 1040 rather than filed alone.
- Where it goes
- The IRS, with the Form 1040 it belongs to.
- When it is due
- The individual return's deadline, so ordinarily 15 April.
- What it is not
- It does not claim credits. Nonrefundable and other credits go on Schedule 3, and the two are often confused because both are attachments of the same shape.
What it reports
Two parts, and which one a number belongs in decides whether it increases income or reduces it.
| Part | What it reports |
|---|---|
| Part I | Additional income: business profit from Schedule C, rental and partnership income from Schedule E, capital gains from Form 4797, unemployment compensation, alimony received, and other income. |
| Part II | Adjustments to income: the deductible half of self-employment tax, self-employed retirement and health insurance, HSA contributions, educator expenses, student loan interest, and IRA contributions. |
| Part I total | Carries to the 1040 as additional income. |
| Part II total | Carries to the 1040 as the adjustments that turn total income into adjusted gross income. |
Adjustments are not deductions
An adjustment on part II reduces adjusted gross income and is available whether or not the return itemizes. That is what separates it from an itemized deduction on Schedule A, which is only worth claiming when the itemized total beats the standard deduction.
Adjusted gross income then decides eligibility for a long list of other things, which is why an adjustment is often worth more than a deduction of the same size.
LedgerBox does not read this form
LedgerBox does not read Schedule 1. It reads the documents its lines are built from: bank and brokerage statements, 1099s, and receipts.
Form Schedule 1 questions
Do I have to file Schedule 1?
Only if you have income or an adjustment it covers. A return with wages and nothing else does not need it.
Where does self-employment income go?
Net profit is computed on Schedule C and carried to Schedule 1, part I. The deductible half of the self-employment tax then appears in part II.
What is the difference between Schedule 1 and Schedule 3?
Schedule 1 handles income and adjustments. Schedule 3 handles credits and other payments. One changes what is taxed; the other changes what is owed.
Read next
- Schedule 3, credits and other payments The attachment Schedule 1 is most often confused with.
- Schedule SE Where the deductible half of self-employment tax is computed.
- Schedule E The rental and pass-through income that feeds part I.
Reference pages on the forms that arrive with a set of books. Every form in the glossary