Tax rules: IRS (2025 Schedule 1-A; Form 1040 instructions; OBBBA fact sheet FS-2025-03) · Vehicle data: NHTSA vPIC · Data updated: July 17, 2026
Schedule 1-A is the one-page Form 1040 attachment that claims four deductions the One Big Beautiful Bill Act created for tax years 2025–2028: tips, overtime, car loan interest, and a $6,000 senior deduction (IRS: 2025 Schedule 1-A). It works with the standard deduction — no itemizing. Car loan interest sits in Part IV.
This is a tax deduction, not a tax credit. It trims your taxable income, not your bill dollar for dollar. And Schedule 1-A is not Schedule 1: two forms, nearly the same name. Here for car loan interest? The line-by-line walkthrough is the deep guide. This page routes all four.
Schedule 1 vs Schedule 1-A: not the same form
Yes, there is a difference. Schedule 1, "Additional Income and Adjustments to Income," reports extra income and above-the-line adjustments like student loan interest. The Additional Deductions form, Schedule 1-A, is new for tax year 2025. It holds the four new OBBBA deductions and nothing else (IRS: what to know about the new form). The draft vs final form question is settled — the 2025 Schedule 1-A is final. Same 1040, different jobs.
The four deductions on Schedule 1-A
Each deduction gets its own Part, its own cap, its own income limit (IRS: OBBBA fact sheet FS-2025-03). Only the car loan interest line is this site's subject. The rest sit here so you can tell them apart.
| Deduction | Part | Max per year | Phases out above (MAGI) |
|---|---|---|---|
| Tips deduction | Part II | $25,000 | $150,000 single / $300,000 joint |
| Overtime deduction | Part III | $12,500 ($25,000 joint) | $150,000 single / $300,000 joint |
| Car loan interest | Part IV | $10,000 | $100,000 single / $200,000 joint |
| Senior deduction, age 65+ | Part V | $6,000 per person | $75,000 single / $150,000 joint |
All four run 2025–2028 and stack on the standard deduction (IRS: FS-2025-03). The tips deduction and overtime deduction carry their own IRS rules, out of scope here. For car loan interest, the full deduction guide covers eligibility — new vehicle, US final assembly, loan originated after December 31, 2024 — and the 1098-VLI guide explains the lender statement.
One attachment, four deductions: car loan interest sits in Part IV, and every part totals on line 38 to Form 1040 line 13b.
Who must file Schedule 1-A — and how it reaches your 1040
You file Schedule 1-A only if you claim at least one of its four deductions (IRS: what to know about the new form). It works with the standard deduction or with itemizing. Its totals attach to Form 1040, 1040-SR, or 1040-NR. Part I settles your MAGI first. Every phase-out keys off it, so run yours through the calculator if income sits near a limit. The figures reach line 38, then flow to Form 1040 line 13b. Software builds and e-files it; paper filers mail it behind the 1040.
Does your tax software support Schedule 1-A?
Yes, at all four major consumer programs. The "does it handle the new Schedule 1-A?" question — asked about FreeTaxUSA on r/tax in April 2026 — has the same answer everywhere. Support can change; current as of July 2026:
| Software | Schedule 1-A supported? | Note |
|---|---|---|
| TurboTax | Yes | Generates and e-files it; inside Free Edition's published scope. |
| FreeTaxUSA | Yes | Advertises IRS e-file with Schedule 1-A. |
| H&R Block | Yes | Handled in the deductions interview; publishes its own OBBB car-loan guide. |
| TaxSlayer | Yes | Consumer and Pro knowledge-base articles since late January 2026. |
None label the screen "1098-VLI." The car loan entry lives under Deductions & Credits, not a form-named page. The line-by-line walkthrough has the click path for each program.
Get the official Schedule 1-A form
The IRS posts it free. Get the fillable PDF, 2025 Schedule 1-A (Form 1040) , plus the plain-language what to know overview . The IRS instructions PDF for Form 1040 shows the line-38 flow to line 13b. Skip any "free OBBBA calculator" that wants an SSN or a payment — the IRS flagged fake tools in FS-2026-09. To size a car loan deduction with nothing stored, use the calculator ; to check US assembly, run the VIN check .
All filing guides in this topic
- Schedule 1-A Car Loan Interest: A Line-by-Line Walkthrough (2026) — Car loan interest goes on Schedule 1-A, Part IV: the VIN line, the $10,000 cap, the phase-out, Form 1040 line 13b — plus TurboTax, FreeTaxUSA, H&R Block and TaxSlayer paths.
- Form 1098-VLI, Explained: The Car Loan Interest Statement (2026) — Form 1098-VLI is the lender statement behind the car loan interest deduction.
Частые вопросы
What's the difference between Schedule 1 and Schedule 1-A?
Who must file Schedule 1-A?
Which line is car loan interest on Schedule 1-A?
Does tax software include Schedule 1-A?
Not tax advice. Sources cited only — expert review pending; consult a licensed tax professional (full disclaimer). Tax figures: IRS 2025 Schedule 1-A; Form 1040 instructions; OBBBA fact sheet FS-2025-03. Vehicle data: NHTSA vPIC. Data updated: July 17, 2026.
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