Schedule 1 – Adjustments

Out of Scope by [line number]:
  • [S1-24] Business expenses of reservists, performing artists, etc
  • [S1-26] Moving expenses
  • [S1-28] Self-employed SEP, SIMPLE and qualified plans
  • [S1-29] Self-employed health insurance (IN SCOPE FOR AARP)
  • [S1-31a] Alimony paid under a divorce agreement executed prior to 1985 (IN SCOPE FOR AARP)
  • [S1-35] Domestic production activities deduction
Useful documents:
Useful web sites:

Tax Slayer entry:

Federal Section > Deductions > Adjustments

Schedule 1 – Form 1040 line 6

[S1-23] Educator expenses:

  • K-12, 900 hours minimum, not home school.
  • Limited to $250 for the taxpayer and $250 for the spouse.
  • Amount above that may be taken as an itemized deduction on schedule A in the 2% section.

[S1-25] Health Savings Accounts:

Requires HSA certification – See the dedicated page for HSAs

[S1-26] Moving Expenses:

Requires Military certification.

[S1-27] Deductible part of self-employment tax:

This amount will be filled in automatically as self-employment income and expenses are entered.

[S1-29] Self-employed health insurance:

  • In scope beginning in tax year 2018.
  • Enter on the self-employment expenses TaxSlayer form.
  • Do not also include as a medical expense if filing Schedule A.

[S1-30] Penalty on early withdrawal of savings:

  • This amount will be filled in automatically based on 1099-INT statements.

[S1-31] Alimony paid:

  • Enter amount and ex-spouse’s SSN
  • If SSN is unknown, enter 111-00-1111, write unknown above SSN and paper file.
  • After 12/31/2018, new alimony agreements will not be deductible, nor reportable as income. Modified agreements still are deductible and reportable unless specifically stating the change in filing rules.

[S1-32] IRA deduction:

  • A new “MyRA” IRA provision was created in 2014 and is a qualified IRA for this deduction.
  • Depending on salary, retirement plan and other factors, all amounts contributed may not be allowed as an adjustment.
  • If contributions exceed the allowed amount (excess contributions) inform the taxpayer that the excess must be removed before the filing deadline to avoid an additional 6% tax. The return can still be e-filed now.
  • ⚠ CAUTION : There seems to be no error indication if the allowed contribution is exceeded, just no adjustment entry shows up on the 1040. Always verify the amount shown on Form 1040.

[S1-33] Student loan interest deduction:

  • Maximum allowed is $2,500 and decreases to 0 in the AGI rage of $65,000 – $80,000  ($130,000 – $160,000 for MFJ).
  • As of 2018, forgiveness of student loans due to death or disability are not included in taxable income.

[S1-34] Tuition and Fees:

  • Currently not supported in 2018 (will this be extended???)

See the Education options resource page

[S1-36] Jury Duty Pay turned over to employer:

  • Enter jury duty pay on the Federal Section > Income > Other Income > Other Inc. Not Reported Elsewhere TS page. Describe as “Jury Duty Pay”.
  • If the taxpayer had to give some or all of the jury duty pay to the employer, enter the amount given to the employer on the Federal Section > Deductions > Adjustments > Other Adjustments TS page.
  • Any payment for travel, food or lodging is not included in income