IRS confirms Trump-ordered $1,776 ‘Warrior Dividend’ for 1.45M troops is tax-free
Fox News
IRS confirms Warrior Dividend tax-free for 1.5 million U.S. service members who received $1,776 payments in December 2025 as Treasury Department rules payments are not taxable income.
Jasmine Baehr is a Breaking News Writer for Fox News Digital, where she covers politics, the military, faith and culture.
The agency said federal tax law specifically excludes from gross income a "qualified military benefit," adding that basic allowances for housing payments fall under that category and therefore are not subject to federal income taxes.
The confirmation caps off President Donald Trump’s pre-Christmas announcement that nearly 1.5 million U.S. service members would receive a special "Warrior Dividend" in recognition of their service and to commemorate roughly 250 years since the nation’s founding.
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