Schedule 1 of the IRS Form 1040 (US Individual Income Tax Return) is used to report additional income and adjustments to income that are not reported directly on page 1 of the Form 1040.

Schedule 1 consists of two pages. The first page covers additional income and the second page covers adjustments to Income.  

Part 1 for additional income includes, but is not limited to, the following items:

  • Taxable Refunds, Credits, or Offsets of State and Local Income Taxes
  • Alimony Received
  • Business Income (or Loss) from Schedule C (Profit or Loss From Business)
  • Other Gains (or Losses) from Form 4797 (Sale of Business Property)
  • Income from a Rental Property, Partnership, S Corporation, Trust or Royalties
  • Farm Income (or Loss)
  • Unemployment Compensation
  • Other Income or Loss

Part II for adjustments to income includes, but is not limited to, the following items:

  • Educator Expenses
  • Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials
  • Health Savings Account (HSA) Deductions on Form 8889 (Health Savings Account)
  • Moving Expenses for Members of the Armed Forces
  • Deductible Part of Self-Employment Tax reported on Schedule SE (Self-Employment Tax)
  • Contributions to Retirement Plans for Self-Employed Individuals
  • Self-Employed Health Insurance Deduction reported on Form 7206 (Self-Employed Health Insurance Deduction)
  • Penalty on Early Withdrawal of Savings
  • Alimony Paid to Former Spouse
  • Contributions to a Traditional IRA
  • Student Loan Interest Deduction
  • Other Adjustments
Sample Video Tutorials

Please visit our YouTube channel here for a walkthrough of the Form 1040 Schedule 1.

Additional Information

Taxpayers can find more information on the IRS website here.