The IRS has published new Schedule 1-A that taxpayers will use for tax year 2025 to claim the One Big Beautiful Bill Act (OBBB) deductions for tips, overtime, and car loan interest as well as the enhanced deduction for seniors. (IR 2026-28, 3/2/2026)
Schedule 1-A and its related instructions – included in the Form 1040 Instructions – allow taxpayers to deduct amounts for these new categories. Generally, taxpayers can claim these new deductions whether they claim the standard deduction or itemize their deductions.
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