The IRS has released a draft of Schedule 1-A (Form 1040), a single worksheet that gathers four deductions created by H.R. 1, P.L. 119-21 (the One Big Beautiful Bill Act) into one place.

The draft lays out how taxpayers calculate potential deductions tied to tips, overtime, and car loan interest, along with the enhanced senior deduction, then sum the amounts and report the total on Form 1040 or 1040-SR line 13b, or on Form 1040-NR line 13c. 

According to Journal of Accountancy, the draft also includes a section to compute modified adjusted gross income used across the four calculations. The common MAGI step should help prevent inconsistent results when a taxpayer qualifies for more than one of the deductions.

The IRS structured Schedule 1-A so that each deduction can be worked through separately and then added to a single total, which is a practical way to implement provisions that are temporary. Under current law, all four deductions expire after the 2028 tax year. 

Practitioners will notice that the form’s design favors both taxpayers and the IRS. A single schedule avoids four separate new forms and centralizes the data the agency must ingest and validate. As Annette Nellen of San José State University noted, consolidating calculations on one schedule should simplify administration for a set of time-limited provisions. 

Eligibility also remains a key factor. The statue includes restrictions and phaseouts that will screen out some filers who expect a benefit. One example is the overtime deduction, which applies to overtime required by the federal Fair Labor Standards Act; overtime mandated only by state law would not qualify. Similar statutory definitions and income thresholds apply elsewhere on the schedule.