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Tax-Free Status Confirmed for Last Year's $1,776 Warrior Dividend

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The IRS has announced that the $1,776 'Warrior Dividend' distributed to 1.5 million service members in December 2025 will not be subject to taxes. This decision, made under President Trump's directive, ensures that these supplemental housing payments are excluded from gross income as per U.S. tax law. The bonus was intended as a token of appreciation for military service and to mark 250 years of U.S. military history. Service members can benefit from this tax exemption, which alleviates financial burdens associated with their service.

Key Details: • The $1,776 Warrior Dividend is tax-free for recipients. • Nearly 1.5 million service members received this bonus in December 2025. • The payment commemorates 250 years of U.S. military service.

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Donald TrumpIRSDepartment of the Treasury

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