Schedule 1 (Form 1040) Filing Checklist for Tax Year 2023
Overview and Purpose
Schedule 1 reports additional income and adjustments to income not captured on Form 1040.
For 2023, Tax Cuts and Jobs Act provisions remain in effect, maintaining alimony rules for agreements executed after December 31, 2018, and standard income tax structures.
Standard deduction amounts for 2023 are $13,850 for single or married filing separately, $27,700 for married filing jointly or qualifying surviving spouse, and $20,800 for head of household. Attach Schedule 1 to Form 1040 or Form 1040-SR whenever reporting additional income sources or claiming adjustments to income.
Ten-Step Filing Checklist
Step 1: Gather Income Documentation
Collect all Forms 1099, including 1099-NEC for business income, 1099-MISC for miscellaneous income, 1099-G for unemployment compensation, 1099-INT for interest, and 1099-DIV for dividends. Obtain all Schedule K-1 forms from partnerships, S corporations, and trusts. Gather documentation for any other income sources, including prizes, awards, gambling winnings, and state tax refunds.
Step 2: Report State and Local Tax Refunds
Enter taxable state and local income tax refunds on line 1. This applies if you received a refund in 2023 and itemized deductions in the prior year when those taxes were paid. Use the tax benefit rule to determine the taxable portion.
Step 3: Report Alimony Income
Enter alimony received on line 2a only if a divorce or separation agreement was executed before January 1, 2019. Enter agreement date on line 2b. Alimony from agreements executed on or after January 1, 2019, is not taxable income under the Tax Cuts and Jobs Act.
Step 4: Complete Business and Supplemental Income Forms
For business income, complete Schedule C showing revenues and expenses. Enter net profit or loss from Schedule C line 31 on Schedule 1 line 3. For rental income, royalties, partnerships, S corporations, or trusts, complete Schedule E and enter the result on line 5. For farm income, complete Schedule F and enter the result on line 6. Attach all completed schedules to your return.
Complete Form 4797 for gains or losses from sales of business property. Enter the result on line 4. These amounts also transfer to Schedule SE, if applicable, for self-employment tax calculation.
Step 5: Report Unemployment and Other Income
Enter total unemployment compensation from Forms 1099-G on line 7. For 2023, all unemployment compensation is fully taxable with no exclusion. The $10,200 exclusion applied only to tax year 2020.
Report other income on lines 8a through 8z, including gambling winnings, cancellation of debt, prizes, awards, jury duty pay, and Alaska Permanent Fund dividends: list the type and amount for each. Do not include wages, interest, dividends, retirement income, or capital gains as those belong on Form 1040 page 1.
Total lines 1 through 7 and line 9, entering the combined amount on line 10. Transfer this to Form 1040 line 8.
Step 6: Claim Educator Expenses
If you are a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide working at least 900 hours during the 2023 school year, enter up to $300 of unreimbursed expenses on line 11. Qualified expenses include books, classroom supplies, computer equipment, software, and professional development courses.
For married couples filing jointly, if both spouses are eligible educators, the maximum combined deduction is $600, but neither spouse can exceed $300 individually. Do not include employer-reimbursed expenses.
Step 7: Report Certain Business Expenses and HSA Deductions
Complete Form 2106 for Armed Forces reservists with unreimbursed travel exceeding 100 miles from home, qualified performing artists meeting IRS criteria, or fee-basis government officials. Enter allowable expenses on line 12 and attach Form 2106.
Complete Form 8889 for Health Savings Account contributions. Enter deductible HSA contribution from Form 8889 on line 13. You must maintain high-deductible health plan coverage to qualify. Attach Form 8889.
Complete Form 3903 only for active-duty Armed Forces members with permanent change of station orders. Enter unreimbursed moving expenses on line 14. Civilian taxpayers cannot claim this deduction for the 2023 tax year. Attach Form 3903.
Step 8: Calculate Self-Employment Tax Deduction
Complete Schedule SE to calculate self-employment tax on net earnings. Enter one-half of the self-employment tax from Schedule SE line 6 on Schedule 1 line 15. This deduction prevents double taxation, as self-employed individuals pay both the employee and employer portions of Social Security and Medicare taxes. Attach Schedule SE to your return.
Step 9: Report Retirement and Health Insurance Deductions
Enter contributions to SEP-IRAs, SIMPLE plans, or qualified self-employed retirement plans on line 16. Calculate contributions using IRS Publication 560 worksheets, accounting for self-employment tax deduction and contribution limits.
Enter self-employed health insurance premiums for medical, dental, vision, and qualified long-term care insurance on line 17. Deduction cannot exceed net self-employment income minus one-half of self-employment tax. Use Form 7206 for multiple businesses.
Enter penalties for early withdrawal from certificates of deposit or similar accounts on line 18. Financial institutions report penalties on Form 1099-INT or Form 1099-OID.
Step 10: Claim Alimony Paid, IRA, and Student Loan Deductions
Enter alimony paid on line 19a only if a divorce or separation agreement was executed before January 1, 2019. Enter the recipient’s Social Security number or Individual Taxpayer Identification Number on line 19b and agreement date on line 19c—failure to provide recipient identification results in $50 penalty. Alimony under agreements executed on or after January 1, 2019, is not deductible.
Enter traditional IRA contributions on line 20. Deduction phases out at specific modified adjusted gross income thresholds if you or your spouse has employer retirement plan coverage. Use the Schedule 1 instructions worksheet.
Enter up to $2,500 of qualified student loan interest on line 21. For 2023, the deduction phases out between $75,000 and $90,000 modified adjusted gross income for single, head of household, or qualifying surviving spouse filers, and between $155,000 and $185,000 for married filing jointly. Not available for married filing separately. Lenders report interest on Form 1098-E.
Complete lines 24a through 24z for other specific adjustments, including jury duty pay given to the employer, rental property expenses, attorney fees for discrimination claims, and housing deduction from Form 2555. Total on line 25.
Add lines 11 through 23 and line 25, entering the total on line 26. Transfer to Form 1040 line 10.
Final Steps and Compliance
Verify all required schedules are attached: Schedule C for line 3, Form 4797 for line 4, Schedule E for line 5, Schedule F for line 6, Form 2106 for line 12, Form 8889 for line 13, Form 3903 for line 14, Schedule SE for line 15, and any forms for other adjustments.
Confirm that the name and Social Security number on Schedule 1 match precisely with the information on Form 1040. Verify line 10 transfers to Form 1040 line 8, and line 26 transfers to Form 1040 line 10.
Attach Schedule 1 directly behind Form 1040 or Form 1040-SR as the first numbered schedule. Sign and date Form 1040 in the declaration section. Both spouses must sign if filing jointly.
File by April 15, 2024, or April 17, 2024, for Maine and Massachusetts residents due to Patriots’ Day and Emancipation Day holidays. Request an extension using Form 4868 if additional time is needed, although this extends the filing deadline, but not the payment deadline.
Special Considerations
Nonresident aliens filing Form 1040-NR have different requirements and may not be eligible to claim all adjustments available to residents. Married filers who file separately cannot claim the student loan interest deduction and are subject to restrictions on other adjustments due to phase-out rules.
Retain all documentation, including Forms 1099, W-2, K-1, and supporting schedules, for at least three years. Ensure the proper attachment of all required forms to avoid processing delays or incomplete return status, which may result in IRS correspondence or an audit.
Line 22 is reserved for future use and should remain blank on 2023 returns. No line redesigns occurred for 2023 compared to 2022, maintaining consistent structure and numbering throughout Schedule 1.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
