Tax year 2026
Schedule 1-A estimator
Four new deductions, four different caps, four different phaseouts — and one shared modified AGI that drives all of them. Enter what your documents say and see what actually lands on the return after Parts II through V are done.
Runs entirely in your browser. Estimates only — not tax advice.
Part I — your return
AGI plus any excluded foreign earned income, foreign housing, Puerto Rico or American Samoa income. For most filers it is just AGI.
Parts II–V — your documents
W-2 Box 12 code TP. Voluntary tips in a listed occupation only.
W-2 Box 12 code TT — the FLSA premium only, not your whole overtime pay.
Form 1098-VLI. New, US-assembled, personal-use vehicle bought after 2024.
Schedule 1-A total
$18,700
Cash value at 22%
$4,114
| Part | After cap | Phaseout | Deduction |
|---|---|---|---|
| Qualified tips (Part II)W-2 Box 12 code TP · 1099-NEC tips boxPhases out from $300,000 to $395,000 | $9,500 | — | $9,500 |
| Qualified overtime (Part III)W-2 Box 12 code TT · 1099-NEC overtime boxPhases out from $300,000 to $368,000 | $6,800 | — | $6,800 |
| Car loan interest (Part IV)Form 1098-VLI Box 1Phases out from $200,000 to $212,000 | $2,400 | — | $2,400 |
| Enhanced senior deduction (Part V)Your date of birthPhases out from $150,000 | $0 | n/a | $0 |
| Total | $18,700 | — | $18,700 |
Part-by-part fine print
Qualified tips (Part II)
- Only voluntary tips in a listed Treasury Tipped Occupation qualify. Mandatory service charges do not.
Qualified overtime (Part III)
- Qualified overtime is only the FLSA-required premium — the extra half in time-and-a-half, not the whole overtime check.
Car loan interest (Part IV)
- The vehicle must be new, assembled in the United States, under 14,000 lbs GVWR, for personal use, and secured by a first lien on a loan taken out after Dec 31, 2024. You also report the VIN.
Enhanced senior deduction (Part V)
- This is on top of the standard deduction and the existing additional deduction for age, and you can claim it whether you itemize or not.
Questions people ask about this
What is Schedule 1-A?
Schedule 1-A, Additional Deductions, is the form that carries the four deductions created by Public Law 119-21: qualified tips (Part II), qualified overtime (Part III), car loan interest (Part IV) and the enhanced deduction for seniors (Part V). Part I computes the modified AGI that drives every phaseout. It attaches to Form 1040, 1040-SR or 1040-NR.
Do I have to itemize to claim these?
No. All four are available whether you take the standard deduction or itemize. They are also not automatic — you have to complete Schedule 1-A to get them.
How do the phaseouts actually work?
Tips and overtime shrink by $100 for each $1,000 of modified AGI over $150,000 ($300,000 joint). Car loan interest shrinks twice as fast — $200 per $1,000 — starting at $100,000 ($200,000 joint). The senior deduction is reduced by 6% of the excess over $75,000 ($150,000 joint), per qualifying person. The tips, overtime and car loan steps round up, so a single dollar over a $1,000 boundary costs a whole step.
Is the $25,000 tips cap doubled if we file jointly?
No. The tips cap is $25,000 per return regardless of filing status. Only the overtime cap doubles on a joint return, to $25,000.
Which documents do I need to fill this out?
Box 12 code TP and code TT on your 2026 Form W-2 give you qualified tips and qualified overtime, with the occupation code in Box 14b. Contractors get the same figures in the tips and overtime boxes of the 2026 Form 1099-NEC. Car loan interest comes from Form 1098-VLI, and you also need the VIN. Age and MAGI come off the return itself.
Can I claim these if I file married filing separately?
The tips, overtime and senior deductions all require a joint return, so married filing separately is not eligible for any of them. Confirm the car loan interest treatment with your preparer before relying on it.
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