What is Schedule 1?
Schedule 1 has two parts. Part I reports additional income not on Form 1040's main lines — business income, rental income, unemployment, gambling winnings, and other income. Part II reports adjustments (above-the-line deductions) that reduce AGI — student loan interest, HSA deductions, half of SE tax, and self-employed health insurance.
SupportedKey Lines
| Part | Line | Description | Source |
|---|---|---|---|
| Part I | Line 3 | Business income | Schedule C net profit |
| Line 5 | Rental/partnership income | Schedule E total | |
| Line 6 | Farm income | Schedule F net profit | |
| Line 7 | Unemployment | 1099-G Box 1 | |
| Line 8b | Gambling winnings | W-2G total | |
| Line 8z | Other income | 1099-MISC Box 3, 1099-C taxable debt, 1099-SA earnings | |
| Line 10 | Total additional income | → Form 1040 Line 8 | |
| Part II | Line 13 | HSA deduction | Form 8889 |
| Line 15 | Half of SE tax | Schedule SE Line 13 | |
| Line 17 | SE health insurance | Form 7206 | |
| Line 18 | Early withdrawal penalty | 1099-INT Box 2 | |
| Line 20 | IRA deduction | Computed with phaseout | |
| Line 21 | Student loan interest | 1098-E (capped at $2,500) | |
| Line 26 | Total adjustments | → Form 1040 Line 10 |
How PaisaTax Handles It
- Fully computed — all lines pull from upstream forms automatically
- Part I Line 10 adds to total income on Form 1040 Line 8
- Part II Line 26 reduces AGI on Form 1040 Line 10
- IRA deduction (Line 20): Computed with IRC §219(g) phaseout based on MAGI and active participant status