Surgent's Schedule 1-A: Implementing Important OBBBA Deductions for 2025

Overview

Schedule 1-A is a new tax form designed to consolidate four key OBBBA deductions that can be taken for the first time in 2025. Ultimately these four deductions: the tip deduction, the overtime deduction, the deduction for interest paid on a new car loan, and the senior deduction, appear as a single entry on line 13b of Form 1040. These deductions are phased out at higher income levels, the calculation of which takes place on Schedule 1-A.

Accounting and finance professionals who wish to understand the mechanics of the four deductions and how they are expressed on Schedule 1-A and consolidated on Form 1040 would benefit from taking this program.

Highlights

• Purpose and organization of Schedule 1-A, Form 1040
• Taxpayers who can use Schedule 1-A
• The relationship of Form 1040 and Schedule 1-A
• Calculating modified adjusted gross income (MAGI) on Part I, Schedule 1-A
• The tip deduction, calculated on Part II, Schedule 1-A
• The overtime deduction, calculated on Part III, Schedule 1-A
• The car loan interest deduction, calculated on Part IV, Schedule 1-A
• The senior deduction, calculated on Part V, Schedule s1-A
• Phase-outs at higher levels of income

Prerequisites

None

Designed For

Accounting and finance professionals who will be advising clients regarding new OBBBA deductions that will be taken for the first time in tax year 2025

Objectives

• Implement the most common OBBBA changes for tax year 2025 using the new Schedule 1-A

Preparation

None