Schedule 1 Calculator

1. Fill in Part I with any additional income you received during the tax year — taxable state refunds, alimony, business income, rental income, unemployment, gambling winnings, or other income not reported on Form 1040 directly.
2. Fill in Part II with above-the-line adjustments to income — educator expenses, HSA, IRA deduction, student loan interest, self-employed health insurance, etc.
3. The calculator totals both sections: Line 10 (added to your Form 1040 income) and Line 26 (subtracted to compute your AGI).
4. Caps are applied automatically: student loan interest is capped at $2,500; educator expenses at $300.
5. For actual filing, use this as a worksheet and transfer the totals to Form 1040 lines 8 and 10. Most tax software fills Schedule 1 automatically from your inputs.

Schedule 1 is an attachment to Form 1040 that reports income and adjustments not handled directly on the main form. Its two sections flow into Form 1040 in opposite directions:

Part I (Additional Income) → adds to Form 1040, Line 8
Part II (Adjustments) → subtracted via Form 1040, Line 10

AGI (Adjusted Gross Income) =
Total Income (Form 1040, Line 9)
− Adjustments (Form 1040, Line 10, from Schedule 1 Line 26)
= AGI (Form 1040, Line 11)

Common situations requiring Schedule 1:

• Self-employed (business income from Schedule C)
• Rental property income (from Schedule E)
• Received unemployment compensation
• Made HSA contributions outside payroll
• Paid student loan interest
• K-12 teacher with classroom expenses
• Withdrew from a CD early and paid a penalty
• Gambling winnings or jury duty pay

Schedule 1 adjustments are some of the most-overlooked tax savings in the US tax code. Unlike itemized deductions (which require giving up the standard deduction), Schedule 1 adjustments stack with the standard deduction, lowering your AGI and unlocking other benefits.

Three commonly-missed adjustments:

• Self-employed health insurance deduction. If you're self-employed and pay your own health insurance premiums (not through a spouse's employer plan), you can deduct 100% of premiums above the line. Includes dental, vision, and long-term care. Easy to miss for new self-employed filers.
• Educator expenses up to $300. Many teachers forget to track classroom supplies and software they bought out-of-pocket. Includes books, computer equipment, professional development. Keep receipts.
• Early withdrawal penalty. If you broke a CD early and the bank charged a penalty (typically 90-180 days of interest), the penalty is deductible on Schedule 1, Line 18. Banks report it on Form 1099-INT, Box 2.