• 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:

  • Gianforte Joins 21 Governors in Signing Federal Anti-Fraud Pledge
  • Treasury Targets Alleged Iranian Abuse of Religious Charity Networks
  • UM College of Business Earns Top National Ranking
  • Scott Twito Named Interim U.S. Attorney for Montana
  • Sibanye-Stillwater Strike Ends After Workers Approve New Contract
  • CoreWeave Adds Major India AI Project

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • IRS Proposes Stricter Eligibility Rules for Health Insurance Tax Credits
  • A New Y2K Moment: What the Threat of Frontier AI Tells Us about Enterprise Modernization
  • Montana Secures $4.8 Million to Expand Workforce Training in High-Demand Industries
  • UM College of Business Earns Top National Ranking

Recent Politics Posts

  • Liberal Groups Criticize Idaho Voting Laws Over Registration Requirements
  • Poll: Inflation tops voter concerns, national debt near the bottom
  • Billings City Council Votes to Sell Lampman Park for $834,000 Housing Development
  • White House Report Estimates $49 Trillion Cost of Democratic Socialist Policies

Recent Business Posts

  • How much is the NFL worth? Inside America’s most valuable sports league
  • How American defense companies can stay competitive in today’s global environment
  • Financial officers warn rating agencies about using ESG in state credit ratings
  • Cboe Names Catherine Grover Chief Human Resources Officer

Copyright © 2026 Digital News Updates, All Rights Reserved.