11i – Schedule 1 – Additional Income and Adjustments to Income (Attach to Form 1040)

📘 Schedule 1 – Additional Income and Adjustments to Income (Attach to Form 1040):-

🔹 Purpose :
Schedule 1 is used to report types of income not listed directly on Form 1040 and to claim certain adjustments (above-the-line deductions).

🔹 Part I – Additional Income :
*Report income such as:
*Business income (from Schedule C)
*Farm income (from Schedule F)
*Rental real estate, royalties, partnerships, S-corps, trusts (from Schedule E)
*Unemployment compensation
*Gambling winnings
*Alimony received (for divorces finalized before 2019)
*Other income not reported on a W-2 or 1099

🔹 Part II – Adjustments to Income :
Claim deductions such as:
*Educator expenses ✏️
*Student loan interest deduction 🎓
*Health Savings Account (HSA) deduction 💳
*Self-employment tax deduction 💼
*IRA contributions 🏦
*Alimony paid (for pre-2019 agreements)
*Moving expenses (for Armed Forces)
*Other “above-the-line” deductions

🔹 Special Notes :
*Totals from Schedule 1 flow into Form 1040, Lines 8 & 10.
*These adjustments reduce Adjusted Gross Income (AGI), which can lower taxable income and affect credits/deductions.

🔹 Example
A taxpayer has $50,000 W-2 wages + $10,000 freelance income (reported on Schedule 1).
They also claim a $2,000 student loan interest deduction here.

👉 Schedule 1 flows these amounts to Form 1040, adjusting AGI.

👉 In short: Schedule 1 = Extra income sources + above-the-line deductions not directly on Form 1040.