The Treasury Department and the Internal Revenue Service announced on Friday, Jan. 16, 2026, that the “warrior dividend” is not taxable. (Enrique Diaz/U.S. Marine Corps)
WASHINGTON — The Treasury Department and the Internal Revenue Service announced on Friday that the “warrior dividend” is not taxable.
“The basic allowance for housing payments are qualified military benefits and, therefore, are not taxable,” the IRS said in a statement.
President Donald Trump during a prime-time address last month announced that 1.45 million military service members would receive a bonus of $1,776. The amount coincides with the United States celebrating its 250th birthday this year.
“In honor of our nation’s founding in 1776, we are sending every soldier $1,776. Think of that,” Trump said. “And the checks are already on the way.”
The one-time basic allowance was intended for all service members ranks O-6 and below.
The money came from the One, Big, Beautiful Bill enacted in July, after Congress appropriated $2.9 billion to supplement the basic allowance for housing to troops.
