• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Digital News Updates
  • Home
  • News
  • Politics
  • Business

$1,776 ‘Warrior Dividend’ Tax-Free, IRS Confirms

January 23, 2026

The Internal Revenue Service today confirmed that the $1,776 “Warrior Dividend” more than 1.5 million service members received last year, at the direction of President Donald J. Trump, would be tax-free.

In a press release posted today, the IRS confirmed the tax-free status of the dividend.

“The Department of the Treasury and the Internal Revenue Service today confirmed that supplemental basic allowance for housing payments made to members of the uniformed services in December 2025 are not to be included in income by those who received the payments; they are not taxable,” the statement reads.

According to the IRS, U.S. tax law excludes from gross income a “qualified military benefit.” The Warrior Dividend is just such a benefit and is therefore not taxable. Service members will keep all of the dividend to use as they see fit.

“The tax-free Warrior Dividend places $1,776 directly in the hands of our warfighters and their families,” Pentagon Press Secretary Kingsley Wilson said today. “The department is proud to recognize their sacrifice.”

On Dec. 17, 2025, the president announced that nearly 1.5 million service members would receive a $1,776 bonus to both thank them for their military service and to commemorate the 250 years the U.S. military has been defending the nation.

“Nobody deserves it more than our military,” he said. “I say, ‘congratulations’ to everybody.”

In a related statement, Secretary of War Pete Hegseth said the dividend illustrates the nation’s commitment to military service members.

“This Warrior Dividend serves as yet another example of how the War Department is working to improve the quality of life for our military personnel and their families,” Hegseth said. “All elements of what we’re doing are to rebuild our military.”

By C. Todd Lopez, Pentagon News

Filed Under: Featured, Home Featured, News

Related Articles:

  • Governor Gianforte Highlights Workforce Training, Apprenticeships in Bozeman
  • Abbott directs investigation into potential Medicaid fraud in Texas
  • MoFi Awarded $85 Million in New Markets Tax Credits
  • Democratic Field Grows in Challenge to Zinke
  • Trump Administration Announces Leadership Team for Gaza Peace and Reconstruction Plan
  • Novel idea to stop corporate spending in elections halted

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • Alaska Army National Guardsmen Conduct a Nighttime Medical Evacuation
  • Grand Forks AFB selected to lead Point Defense Battle Lab
  • $1,776 ‘Warrior Dividend’ Tax-Free, IRS Confirms
  • Medical Genetics Center: Empowering Patients One Test at a Time

Recent Politics Posts

  • GOP senators introduce bill to increase penalties for assaulting ICE officers
  • Novel idea to stop corporate spending in elections halted
  • Wyoming pro-life laws struck down by state Supreme Court
  • Daines Urges Expanded Trade Access for Montana Pulse Crops in India

Recent Business Posts

  • Mitsubishi buys Louisiana, Texas shale gas assets for $7.5B
  • Montana State University Extension to host winter ag series in southeastern Montana Jan. 19-23
  • MoFi Awarded $85 Million in New Markets Tax Credits
  • JP Morgan Lifts NorthWestern Energy Price Target to $61 Amid Black Hills Merger Plans

Copyright © 2026 Digital News Updates, All Rights Reserved.