Schedule 1 (Form 1040-SR) - Instructions

Schedule 1 (Form 1040-SR) is used by taxpayers who are seniors (aged 65 or older) and need to report additional income or adjustments to income that cannot be entered directly on Form 1040-SR. The form is an attachment to your standard Form 1040-SR. Common examples of additional income include earnings from a business, alimony, rental income, or unemployment compensation. Adjustments could include deductible student loan interest or educator expenses.

Who Needs to File Schedule 1

You must file Schedule 1 with your Form 1040-SR if you have additional income, such as business income, unemployment compensation, prize money, or gambling winnings. You should also use the schedule if you want to make adjustments to income for items like IRA deductions, student loan interest deductions, or educator expenses.

Part I: Additional Income

Here, list the types and amounts of income you received that are not reported on Form 1040-SR.

Line 1: Taxable refunds, credits, or offsets of state and local income taxes.
Line 2: Alimony received if the divorce or separation instrument was executed before 2019.
Line 3: Business income or loss from a sole proprietorship.
Line 4: Other gains or losses, such as from the sale of business property.
Line 5: Rental real estate, royalties, partnerships, S corporations, trusts, etc.
Line 6: Farm income or loss.
Line 7: Unemployment compensation.
Line 8: Other income, including prizes, awards, gambling winnings, and other similar amounts.

Add up all the figures on lines 1 through 8 and put the total on line 9. This is your total additional income.

Part II: Adjustments to Income

Here, list any adjustments you can subtract from your income to determine your adjusted gross income.

Line 10: Enter educator expenses.
Line 11: Enter certain business expenses for reservists, performing artists, and fee-basis government officials.
Line 12: Health savings account deduction.
Line 13: Moving expenses for members of the Armed Forces.
Line 14: Deductible part of self-employment tax.
Line 15: Self-employed SEP, SIMPLE, and qualified plans.
Line 16: Self-employed health insurance deduction.
Line 17: Penalty on early withdrawal of savings.
Line 18: Alimony paid (only for agreements executed before 2019).
Line 19: IRA deduction.
Line 20: Student loan interest deduction.

Add up all figures on lines 10 through 20 and put the total on line 21. This is your total adjustment to income.

Filing Your Schedule 1 With Form 1040-SR

After completing Schedule 1, attach it to your IRS Form 1040-SR when filing your tax return. Enter the total amounts from lines 9 and 21 onto the designated lines of your Form 1040-SR to adjust your gross income accordingly.

Tips for Filing

Gather all necessary documentation for additional income and adjustments before you start filling out the schedule.
Be sure to read each line carefully and understand what is required — some lines may not apply to all taxpayers.
Note that deductions and credits can change from year to year, so it’s essential to use the most current forms and instructions from the IRS.
If you need help or are unsure about anything, don’t hesitate to consult with a tax professional or use IRS-approved software for tax preparation.

Filing Schedule 1 along with your Form 1040-SR can seem daunting at first. However, by carefully following the instructions and ensuring you record all additional income and adjustments accurately, you can maximize your deductions and ensure your tax return is complete. Always refer to the most up-to-date IRS guidelines when preparing your taxes, as laws and figures are subject to change.