Form 1040(SP) ANEXO 1: Ingreso Adicional y Ajustes al Ingreso (2022) – A Complete Guide

Form 1040(SP) Schedule 1 (Anexo 1) is the Spanish-language version of Schedule 1, a supplemental form used alongside the main Form 1040(SP) tax return. Think of your Form 1040 as the main highway of your tax return, while Schedule 1 acts as important exit ramps—capturing income sources and deductions that don't fit on the main form. This additional schedule ensures the IRS gets a complete picture of your financial situation, from unemployment benefits to educator expenses, and helps calculate your adjusted gross income accurately.

What Form 1040(SP) Anexo 1 Is For

Schedule 1 serves two critical functions: reporting additional income you received and claiming adjustments that reduce your taxable income. The form divides into two parts. Part I (Ingreso Adicional) captures income beyond wages, salaries, and typical investment earnings—things like business profits from your Schedule C, unemployment compensation, gambling winnings, alimony you received, rental income, farm income, and even jury duty pay. Part II (Ajustes al Ingreso) lets you subtract certain expenses from your total income before calculating your tax, including educator expenses, student loan interest, self-employment tax, contributions to retirement accounts for self-employed individuals, health insurance premiums if you're self-employed, and IRA contributions.

The amounts you report on Schedule 1 flow directly to your main Form 1040(SP). Line 10 of Schedule 1 (your total additional income) transfers to line 8 of Form 1040(SP), and line 26 of Schedule 1 (your total adjustments) transfers to line 10 of Form 1040(SP). These adjustments are valuable because they reduce your adjusted gross income (AGI), which affects your eligibility for other deductions and credits—essentially lowering your tax bill before you even get to standard or itemized deductions.

You'll need Schedule 1 if your financial situation includes any income sources beyond standard wages and retirement distributions shown on your W-2 or 1099 forms, or if you qualify for any of the "above-the-line" deductions that reduce your AGI. Most taxpayers with straightforward employment income won't need this schedule, but anyone who's self-employed, receives alimony, earned unemployment benefits, or qualifies for specific deductions like student loan interest will use it.

When You’d Use Form 1040(SP) Anexo 1 (Late or Amended Filing)

You must file Schedule 1 alongside your Form 1040(SP) when you originally file your 2022 tax return if you have any additional income or adjustments to report. For tax year 2022, the filing deadline was April 18, 2023 (extended from the usual April 15 due to the Emancipation Day holiday in Washington, D.C.). If you missed this deadline, you should file as soon as possible. While filing late triggers penalties and interest on any unpaid taxes, submitting your return eventually is essential—especially if you're owed a refund, as you typically have three years from the original deadline to claim it.

If you already filed your 2022 return but later discover you forgot to include income that belongs on Schedule 1, or you realize you're eligible for adjustments you didn't claim, you'll need to file an amended return using Form 1040-X (Amended U.S. Individual Income Tax Return). The general rule gives you three years from the date you filed your original return, or two years from when you paid the tax, whichever comes later, to file an amendment. For example, if you filed your 2022 return on time in April 2023, you generally have until April 2026 to amend it. However, special extensions apply if you live in a federally declared disaster area or experience certain hardships.

Common scenarios requiring amended returns include discovering unreported unemployment compensation, finding forgotten 1099 forms after filing, learning you qualify for educator expenses or student loan interest deductions you didn't claim, or receiving corrected forms from employers or financial institutions. While amending might seem daunting, it's straightforward—Form 1040-X asks you to show your original figures, the correct figures, and explain the changes. If your amendment results in additional tax owed, file and pay as quickly as possible to minimize interest charges. If you're due a larger refund, the IRS will process it, though amended returns take considerably longer than original returns—typically 16 to 20 weeks.

Key Rules or Details for 2022

General Reporting Principles

Several important rules govern Schedule 1 reporting. First, understand that Part I income increases your tax liability while Part II adjustments decrease it—so accuracy in both sections directly impacts your bottom line. All income is taxable unless specifically excluded by law, meaning if you received money, goods, or services with economic value, you generally must report it even if you didn't receive a 1099 form for it. This includes cash payments, bartering exchanges, and cryptocurrency transactions.

Alimony Rules After 2018

For alimony, critical rule changes took effect for divorce agreements executed after December 31, 2018. If your divorce or separation agreement was signed after that date, alimony received is generally NOT taxable to you (don't report it), and alimony paid is NOT deductible (don't claim it as an adjustment). Only alimony under pre-2019 agreements remains taxable/deductible. When reporting alimony, you must provide the recipient's Social Security Number and the date of your original divorce decree or separation agreement—the IRS uses this to verify both parties report consistently.

Educator Expense Rules

For educators, you can deduct up to $300 of unreimbursed classroom expenses ($600 if married filing jointly and both spouses are eligible educators). To qualify, you must work at least 900 hours during the school year as a teacher, instructor, counselor, principal, or aide in a kindergarten through grade 12 school. Qualified expenses include books, supplies, computer equipment, COVID-19 protective items, and professional development courses. The IRS specifically allowed deductions for personal protective equipment, disinfectant, and other pandemic-related supplies for 2022.

Student Loan Interest Deduction Rules

The student loan interest deduction allows you to subtract up to $2,500 of interest you paid on qualified student loans, subject to income limitations. The deduction begins phasing out for single filers with modified adjusted gross income above $70,000 ($145,000 for joint filers) and disappears completely above $85,000 ($175,000 jointly). The loan must have been taken out solely for qualified higher education expenses for you, your spouse, or your dependent. Interest on loans from relatives or employer plans doesn't qualify.

Self-Employment and Schedule 1

Self-employed individuals face unique rules. You must report all self-employment income on Schedule C (business) or Schedule F (farming), then transfer the profit or loss to Schedule 1, line 3 or 6. Half of your self-employment tax (calculated on Schedule SE) becomes an adjustment on Schedule 1, line 15. Self-employed health insurance premiums paid for yourself, your spouse, and dependents qualify as adjustments on line 17, but only if you weren't eligible for employer-sponsored coverage through another job or your spouse's employer and you had a net profit from self-employment.

Step-by-Step (High Level)

Step 1: Gather Your Documents

Begin by gathering all relevant income documents: Forms 1099-G for unemployment, 1099-MISC or 1099-NEC for business income, Schedule K-1s from partnerships or S corporations, 1099-INT showing early withdrawal penalties, and any other statements showing income beyond your W-2. Also collect documentation for potential adjustments: receipts for educator expenses, Form 1098-E showing student loan interest paid, records of retirement contributions if self-employed, and health insurance premium statements if self-employed.

Step 2: Complete Part I – Additional Income (Ingreso Adicional)

Start with Part I, working down line by line. Line 1 requires special attention if you itemized deductions on your 2021 return—you'll need to complete a worksheet to determine if any state or local tax refund you received in 2022 is taxable. For most people who took the standard deduction in 2021, state refunds aren't taxable. Report alimony received from pre-2019 agreements on line 2a, being sure to enter the date of your original agreement on line 2b. Transfer business income or loss directly from Schedule C to line 3. Report unemployment compensation exactly as shown in Box 1 of your Form 1099-G on line 7, even though it may surprise you that it's fully taxable.

Lines 8a through 8z capture miscellaneous income items. Most taxpayers will skip these, but they're crucial for specific situations. For instance, if you received a Form 1099-MISC showing gambling winnings, report them on line 8b. If you had debt canceled or forgiven (other than through bankruptcy), you may need to report it on line 8c, though significant exceptions exist. Wages you earned while incarcerated go on line 8u. If you received distributions from a Health Savings Account (HSA), report them on line 8e if they're taxable. After completing all applicable lines, add lines 1 through 9 and enter the total on line 10—this amount transfers to your Form 1040(SP), line 8.

Step 3: Complete Part II – Adjustments to Income (Ajustes al Ingreso)

Move to Part II for adjustments. On line 11, claim up to $300 of educator expenses if you qualify. Line 13 captures your Health Savings Account deduction from Form 8889. If you're self-employed, line 15 will show half your self-employment tax from Schedule SE—this is automatic once you complete Schedule SE, not a discretionary deduction. Line 16 lets you deduct contributions you made as a self-employed person to SEP, SIMPLE, or other qualified retirement plans. Line 17 captures self-employed health insurance, but you must complete a detailed worksheet in the instructions to verify eligibility. Claim any penalties for early withdrawal of savings on line 18—your Form 1099-INT or 1099-OID will show these.

The IRA deduction on line 20 requires careful calculation if you or your spouse had retirement plan coverage at work, as income limitations apply. The instructions include a comprehensive worksheet. Student loan interest goes on line 21, subject to the $2,500 cap and phase-out ranges mentioned earlier. Lines 24a through 24z capture less common adjustments—jury duty pay you had to turn over to your employer (24a), attorney fees for certain discrimination lawsuits or IRS whistleblower awards (24h and 24i), and various other specific situations detailed in the instructions. After completing all applicable adjustment lines, add lines 11 through 25 and enter the total on line 26—this amount transfers to Form 1040(SP), line 10.

Common Mistakes and How to Avoid Them

Unreported or Misreported Unemployment Compensation

One of the most frequent errors involves reporting unemployment compensation. Many taxpayers mistakenly believe unemployment is tax-free or partially exempt—it's not. Every dollar from Box 1 of Form 1099-G must be reported on Schedule 1, line 7. Failure to report this triggers IRS matching notices because states electronically report all unemployment payments directly to the IRS. Always include the full amount, even if you had taxes withheld from the benefits.

Alimony Confusion After the Rule Change

Alimony reporting generates substantial confusion due to the 2019 rule change. Double-check your divorce or separation agreement date. If executed after December 31, 2018, don't report alimony received as income and don't deduct alimony paid. If your original agreement was pre-2019 but was later modified, special rules apply depending on whether the modification expressly states the new rules apply. When in doubt, the agreement date in Part II, line 19c, is your original divorce decree or separation agreement date, not a modification date, though modifications can change the tax treatment.

Errors with Educator Expenses

Educator expenses mistakes often stem from claiming more than the $300 limit ($600 if married with both spouses eligible) or including non-qualifying expenses. You can't deduct home schooling expenses, non-athletic supplies for physical education courses, or items your school reimbursed. Keep detailed receipts showing the date, amount, and purpose of each expense. If you taught for only part of the year, you can still claim the full $300 if you met the 900-hour threshold for the school year.

Self-Employed Health Insurance and Eligibility Errors

Self-employed taxpayers frequently make errors with the health insurance deduction on line 17. You cannot claim this adjustment if you were eligible for subsidized health insurance through your own or your spouse's employer at any time during months you're claiming the deduction. The deduction also can't exceed your net self-employment income. Many taxpayers incorrectly include Medicare premiums—these are allowed. If you received advance Premium Tax Credit payments for Marketplace coverage, the calculation becomes more complex, requiring coordination with Form 8962.

Student Loan Interest and Income Limits

Student loan interest reporting errors occur when taxpayers deduct interest they paid on loans that don't qualify—such as loans from relatives, refinanced home equity loans used for education, or credit cards used to pay tuition. Only interest on formal qualified education loans counts. Also, if you're claimed as a dependent on someone else's return, you can't take this deduction even if you paid the interest yourself. Finally, many taxpayers exceed income limits but claim the deduction anyway—use the worksheet in the instructions to calculate your allowed amount based on your modified AGI.

Assembly, Math, and Attachment Errors

Assembly and math errors create unnecessary delays. The IRS reports that returns filed electronically have error rates around 0.5%, while paper returns have error rates exceeding 20%. When you must file on paper, double-check all arithmetic, ensure Schedule 1 is attached behind your Form 1040(SP) in the proper sequence order (Schedule 1, then Schedule 2, then Schedule 3), and verify every Social Security Number is correct. An incorrect SSN for an alimony recipient will trigger IRS correspondence.

What Happens After You File

Once you submit your Form 1040(SP) with Schedule 1 attached, the IRS processes your return through their computer systems. If you e-filed, you'll receive an electronic acknowledgment within 24 hours confirming the IRS accepted your return for processing. Paper returns take significantly longer—allow four weeks or more before checking on status. You can track your refund status using the "Where's My Refund?" tool at IRS.gov/Refunds or through the IRS2Go mobile app, but information typically won't appear until about 24 hours after e-filing or four weeks after mailing.

Most refunds arrive within 21 days of e-filing if you chose direct deposit—the fastest method. Paper check refunds take several additional weeks. However, if you claimed the Earned Income Credit or Additional Child Tax Credit, the IRS cannot issue your refund before mid-February by law, regardless of when you filed. This delay helps prevent fraud and gives the IRS time to verify employment and income information with employers.

The IRS computer systems automatically check your return against information documents (W-2s, 1099s, etc.) that employers, financial institutions, and government agencies submitted. If something on your Schedule 1 doesn't match their records—for example, you reported $5,000 of unemployment but the state reported paying you $7,500—you'll receive a CP2000 notice proposing changes to your return. This isn't technically an audit, but rather an underreporter inquiry. You'll have an opportunity to respond, either agreeing with the changes or explaining why your original return was correct with supporting documentation.

If you owe tax based on Schedule 1 income and didn't pay enough through withholding or estimated payments, the IRS will send a notice showing the balance due plus interest and any late payment penalties. Interest accumulates daily on unpaid taxes from the April deadline forward. The failure-to-pay penalty is typically 0.5% of the unpaid tax per month, up to 25%. If you can't pay the full amount, contact the IRS immediately to set up a payment plan—installment agreements are readily available and stop most collection actions.

Schedule 1 information affects your adjusted gross income, which in turn influences eligibility for many tax benefits in future years. Adjustments that lower your AGI can help you qualify for credits and deductions you might otherwise lose due to income phase-outs. The IRS uses your current year's AGI to verify your identity when you file next year's return electronically, so keep your 2022 return accessible when preparing your 2023 taxes. Your AGI also determines eligibility for income-driven student loan repayment plans, financial aid calculations, and various state benefit programs beyond taxes.

FAQs

I received a Form 1099-G for unemployment benefits but never got the money because of fraud—someone filed a claim in my name. Do I still report it on Schedule 1?

No. Report only the unemployment compensation you actually received. Contact your state unemployment agency immediately to report the fraud and request a corrected Form 1099-G showing zero or the accurate amount. If you can't get a corrected form before filing, include a statement with your return explaining the situation. The IRS will match your return to the Form 1099-G on file, so documentation of the fraud report is crucial to avoiding future notices.

Can I deduct job search expenses on Schedule 1, line 24z, since I was unemployed for part of 2022?

Unfortunately, no. Job search expenses were eliminated as deductions under the Tax Cuts and Jobs Act of 2017, effective for tax years 2018 through 2025. This includes resume preparation, career counseling, employment agency fees, and travel to interviews. While this deduction existed in prior years, it's not available for your 2022 return. The exception is if you're self-employed and the expenses relate to your existing business—then they might belong on Schedule C instead.

My divorce decree from 2015 says I receive alimony, but my ex-spouse says they won't give me their Social Security Number. Can I still report the alimony on Schedule 1 and take the deduction?

You're required to report alimony received from a pre-2019 agreement, and your ex-spouse should deduct what they paid—but the deduction requires providing your SSN to them. If your ex-spouse refuses to provide their SSN to you (you don't report this on Schedule 1 when receiving alimony), that's their problem with the IRS when they try to claim the deduction. You must report what you received regardless. If they refuse to provide you their SSN and you're the one paying alimony and trying to deduct it, you should report what you know and attach a statement explaining their refusal—but be prepared for the IRS to disallow your deduction without a valid SSN for the recipient.

I'm a teacher who spent $600 on classroom supplies. My principal reimbursed me $200 in December. Can I deduct the full $600 on line 11?

No, you can only deduct unreimbursed expenses. Since you received $200 reimbursement, you can deduct up to $300 of the remaining $400 you spent out-of-pocket (the maximum educator expense deduction is $300 per eligible educator). The reimbursement isn't taxable income to you as long as you spent at least that amount on qualifying expenses. If your spouse is also an eligible educator who spent $300 or more unreimbursed, you can deduct $600 total on a joint return ($300 each).

I had $8,000 of gambling winnings but $10,000 in gambling losses. Do I report anything on Schedule 1, and can I offset the winnings with the losses?

You must report the full $8,000 of gambling winnings on Schedule 1, line 8b. Gambling losses can only be deducted as an itemized deduction on Schedule A, and only up to the amount of your winnings—so you could deduct $8,000 of your $10,000 in losses if you itemize. You cannot net winnings and losses on Schedule 1. This often surprises casual gamblers who end up owing tax on winnings even though they lost money overall for the year. Keep detailed records of all gambling activity, including receipts, tickets, and a gambling log showing dates, locations, and amounts.

I withdrew money from my IRA early and paid a 10% penalty. Does that penalty count as an adjustment on Schedule 1?

No. The 10% early withdrawal penalty on retirement accounts is reported and paid on Schedule 2 (Form 1040), Part II, line 8, not on Schedule 1. It's an additional tax, not an adjustment to income. The amount you withdrew from your IRA (minus any non-deductible contributions) is taxable income that appears on Form 1040(SP), line 4b or 5b, not on Schedule 1. What does go on Schedule 1, line 18, is if you withdrew money early from a regular savings account or certificate of deposit and the bank charged you a penalty—that penalty is deductible as an adjustment.

I'm self-employed and paid $6,000 in health insurance premiums for my family. My spouse's employer offered coverage but we didn't take it because my plan was better. Can I deduct the premiums on line 17?

Unfortunately, no. You cannot take the self-employed health insurance deduction for any month in which you or your spouse were eligible to participate in an employer-subsidized health plan, even if you chose not to enroll. The fact that your spouse's employer offered coverage disqualifies you from this deduction for those months. If your spouse's coverage option was only for the employee (not family) and wouldn't have covered you, special rules might apply—consult IRS Publication 535 or a tax professional. This is one of the most misunderstood rules for self-employed individuals.

Sources

IRS Form 1040 Schedule 1 (2022)
IRS Form 1040 Instructions (2022)

‍