VICTORY FOR OUR WARRIORS: TAX-FREE HOUSING SUPPORT HONORS MILITARY STRENGTH AND DEDICATION
THE PRESS CENTER | BREAKING NEWS | IRS
JANUARY 18 2026 AT 9:26 PM
Empowerment in Action The Department of the Treasury and the Internal Revenue Service proudly affirm that the supplemental basic allowance for housing payments distributed to members of the uniformed services in December 2025 are completely tax-free. This means every dollar of this well-deserved support remains in the hands of our nation’s heroes—no deductions, no hidden catches, no ambiguity. It is a direct recognition of your service, your dedication, and your unwavering commitment to defending freedom.
Clarity and Confidence Here’s what you need to know, with full transparency:
- In July 2025, Congress passed the One, Big, Beautiful Bill, allocating $2.9 billion specifically to strengthen the housing support for military members.
- In December, President Donald J. Trump announced that 1,450,000 service members would receive a special “Warrior Dividend” before Christmas.
- Each eligible recipient—primarily active-duty members in pay grades O-6 and below, along with qualifying Reserve Component members as of November 30, 2025—received a one-time supplemental payment of $1,776.
- These payments went to members of the Army, Air Force, Navy, Marine Corps, and Space Force, ensuring broad support across the uniformed services.
- Federal tax law defines these housing payments as “qualified military benefits.” By law, they are excluded from taxable income. You keep every cent.
SOURCE CREDIT: https://www.irs.gov/newsroom
