• 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:

  • Montana Auditor Prevents $1M in Fraud in Second Quarter
  • Morgan Stanley: SpaceX at $100 Would Value Its AI Business at Zero
  • Gov. Little Announces New Appointments
  • Brown Stops $5M in Fraud Targeting Montana Native Communities
  • Sheehy Sworn Into U.S. Navy Reserve by President Trump
  • Health insurance premiums rival mortgage costs as 2027 could see huge rate hikes

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • Health insurance premiums rival mortgage costs as 2027 could see huge rate hikes
  • Brown Stops $5M in Fraud Targeting Montana Native Communities
  • Former University Professor Sentenced to Over 18 Years for Child Exploitation Crimes
  • 62 New Officers Graduate From Montana Law Enforcement Academy

Recent Politics Posts

  • Ken Paxton’s campaign says he will debate James Talarico in Texas’ U.S. Senate race
  • Fauci invokes Fifth Amendment to avoid Senate testimony
  • Tracking the money raised and spent in the U.S. Senate race between James Talarico and Ken Paxton
  • Democrat Attorneys Urge Party to Clear Field for Bodnar

Recent Business Posts

  • Paramount Delays Warner Merger Closing Until 2027 Amid States’ Legal Challenge
  • Commerce Announces $781,000 in Grant Funding to Boost International Sales for Montana Small Businesses
  • Morgan Stanley: SpaceX at $100 Would Value Its AI Business at Zero
  • American Express Q2 Beat Fails to Impress Investors

Copyright © 2026 Digital News Updates, All Rights Reserved.