Overview

• Schedule 1‑A is a two‑page form to be attached to 2025 federal returns to claim deductions for qualified tips, qualified overtime, car‑loan interest and an enhanced seniors deduction.
• The draft specifies a vehicle identification number field and limits the car‑loan interest deduction to loans originated in 2025 for new vehicles with final assembly in the United States, excluding used cars and foreign‑assembled models.
• Taxpayers age 65 and older may claim an additional $6,000, with the benefit phasing out starting at $75,000 MAGI for singles and $150,000 for joint filers.
• All four benefits are below‑the‑line, reducing taxable income but not adjusted gross income, and they are available whether taxpayers itemize or take the standard deduction.
• The IRS emphasized the form is an early draft and further Treasury/IRS rulemaking and public comments could change eligibility and reporting details before the 2025 filing season.