The One Big Beautiful Bill Act (OBBBA) created multiple new deductions that people may take even if they do not itemize deductions on their tax returns. However, because existing federal tax forms were not structured to accommodate these new deductions, the IRS has created a new form for the 2025 tax year: Schedule 1-A (Form 1040), Additional Deductions, to allow taxpayers to properly report them.

You will need to complete Schedule 1-A and include it with your return if you qualify for any of the following deductions:

• No Tax on Tips

• No Tax on Overtime

• No Tax on Car Loan Interest

• The Enhanced Deduction for Seniors (age 65 or older)

Several of these deductions require detailed information, such as income documentation, employment details, loan information, or age-based qualifications, to support the amounts claimed. Because errors or omissions could delay processing or reduce your allowable deduction, working with a tax professional can be especially helpful.