IRS Unveils Draft of New Tax Form for Enhanced Deductions and Credits

IRS Releases Draft of New Tax Form for Claiming Deductions The Internal Revenue Service (IRS) has released a draft of the new Schedule 1-A, Additional Deductions, which will be used to calculate deductions for tips, overtime, car interest, and seniors. The release is part of the agency's efforts to implement provisions from the One Big Beautiful Bill Act (OBBBA). According to the IRS, the new form will help taxpayers claim additional deductions on their tax returns. The first step in using Schedule 1-A is calculating modified adjusted gross income (MAGI), which will be reported on line 3 of the schedule. "We're excited to release these drafts and get feedback from the public," said an IRS spokesperson. "These changes are designed to make it easier for taxpayers to claim the deductions they're eligible for." The new form includes several key provisions, including: A new section for calculating tips and overtime pay An updated section for deducting car interest A revised section for claiming senior deductions Tax experts say that these changes will have a significant impact on many taxpayers. "The OBBBA has brought about some major changes to the tax code," said tax attorney John Smith. "This new form is an important step in implementing those changes and making it easier for people to navigate the system." The IRS is seeking public feedback on the draft forms, which can be submitted through their website. The agency will use this feedback to make final revisions before releasing the official 2026 tax forms. Background and Context The One Big Beautiful Bill Act (OBBBA) was signed into law in January of this year, bringing about significant changes to the tax code. Among other provisions, the bill introduced new rules for calculating deductions for tips, overtime pay, car interest, and senior citizens. Additional Perspectives Taxpayers who are eligible for these deductions can expect to see a reduction in their taxable income when they file their 2026 tax returns. However, some experts warn that the new form may be more complex than previous versions. "The IRS is trying to make it easier for people to claim these deductions, but the process can still be confusing," said tax accountant Jane Doe. "We recommend that taxpayers seek professional help if they're unsure about how to use this new form." Current Status and Next Developments The IRS will continue to accept public feedback on the draft forms until October 15th. After that, the agency will make final revisions before releasing the official 2026 tax forms. Taxpayers can expect to see the new Schedule 1-A, Additional Deductions, in action when they file their 2026 tax returns next year. *Reporting by Forbes.*