$1,776 Warrior Dividend given out last year will be tax-free
EL PASO, Texas (KVIA) -- The IRS says President Donald Trump has directed that the $1,776 "Warrior Dividend" received by 1.5 million service members last year will be tax-free.
"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.
The IRS says that U.S. tax law excludes qualified military benefits from gross income.
"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," a spokesperson explained.
