Good News for Troops: “Warrior Dividend” is Tax-Free
In a move celebrated by many, the Internal Revenue Service (IRS) has confirmed that the special $1,776 “Warrior Dividend” given to our service members in December is free from taxes. This means that our troops get to keep the entire bonus, a welcome boost during the holiday season.
The Treasury Department and the IRS jointly announced that these payments, meant to help with housing costs, will not be counted as income. This decision follows existing tax laws that exclude “qualified military benefits” from being taxed, ensuring our military families receive the full benefit.
This dividend was first announced by President Trump as a way to honor the dedication of nearly 1.5 million American service members and to mark the 250th anniversary of our nation.
According to the IRS, the money for these payments came from funds set aside by Congress last year. These payments were primarily for active-duty service members in lower pay grades, as well as eligible members of the Reserves, across all branches of the military.
Secretary of War Pete Hegseth praised the decision, emphasizing the importance of supporting military families. “This Warrior Dividend is just one more way we’re working to improve the lives of our service members and their families,” Hegseth stated, highlighting the ongoing efforts to strengthen our military.
